• Fri. Dec 1st, 2023

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96% of American Drivers Don’t Understand Their Car Insurance Policies

CAMBRIDGE, Mass.–(BUSINESS WIRE)–Insurify, America’s highest-rated car insurance comparison site, released its report titled, “The 5 Biggest Car Insurance Myths: What Most Americans Get Wrong About Their Policies,” on Thursday. The report, which investigates the average American’s car insurance literacy, found that 96% of American drivers don’t understand fundamental aspects of their car insurance policy, including what damages it covers them against and what out-of-pocket costs they’re vulnerable to in the event of a claim.

The report surveyed over 1,000 respondents to assess how well drivers across the United States understand their auto insurance policies, asking questions about their car insurance coverage, what it covers, and what factors determine their insurance rates.

“The average American driver spends over $1,632 on car insurance a year, but they might not even understand what that money is going towards,” said Kacie Saxer-Taulbee, Manager of Research and Content at Insurify. “We wanted to publish this report to demystify car insurance basics and help drivers make more responsible decisions when buying coverage.”

Overall, the average driver scored only 56% on the survey—a failing grade by most standards. The report broke down the survey’s results, accompanying each misconception with the correct facts. Some key findings from the report include:

– 96% of drivers misunderstand at least one key aspect of their car insurance policy, and more than half have false assumptions about multiple features of their coverage.

– 78% of drivers falsely believe that comprehensive coverage covers damage to their own vehicle in the event of an accident.

– 52% of drivers incorrectly assume that bodily injury liability, which is required in most states, covers their own medical expenses in an accident.

– One-third of American drivers don’t apply for car insurance discounts, even if they know they’re eligible for them. Women are significantly less likely than men to take advantage of discounts.

– 84% of the drivers surveyed agreed that comparing car insurance quotes between multiple providers saved money.

See Insurify’s report “The 5 Biggest Car Insurance Myths: What Most Americans Get Wrong About Their Policies,” for more insights on car insurance literacy in America.

About Insurify

Based in Cambridge, MA, Insurify is a one-stop-shop comparison platform for car, home, and life insurance, helping consumers save time and money on their coverage by comparing quotes. With over $170B of insurance coverage purchased and over four million satisfied customers, Insurify has achieved 50x revenue growth since 2016 and won several insurance industry awards, including: Forbes Fintech 50 2021, Stevies’ Gold International Business Award for a Medium-sized Insurance Company 2021, Inc.’s 5000 fastest-growing private companies in America of 2021, EY’s 2021 New England Entrepreneur of the Year, and Insurtech Insights’ Future 50 2021.


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