Insurance.com recently conducted a survey that was completed by 500 drivers. The survey was comprised of ten multiple-choice questions about coverages offered in car insurance policies. Results showed that, on average, each respondent was only able to answer three questions correctly.
Based on the results it is highly likely that drivers are making mistakes when deciding how much coverage they want when purchasing an auto insurance policy. Especially if they opt for policies online (which are increasing in popularity) as they may not be getting needed guidance from a miami car insurance agent.
When they compared answers given by men and women, women answered 35% of the questions correctly while the men only answered 27% correctly. Respondents that claimed to have read their entire policy got a score of 28% while those that say they have never read it had an average of 35%. The lowest average score came from drivers claiming to have excellent car insurance while the highest average score of 39% came from 40+ drivers.
Two questions asked were ‘What does comprehensive coverage pay for? (check all that apply)’ and ‘What does collision coverage pay for (check all that apply)’? Both questions had the same options to choose from for their answer:
a. Damage to my car if I crash it
b. Damage to my car if an object falls on it, like a tree
c. Damage to my car if I hit an animal, like a deer
d. Damage to my car from a flood
e. Property damage to others if I cause a crash
f. Injuries to passengers in my own car
g. Theft of my car
Only 2% answered the comprehensive coverage question correctly by answering with options b, c, d, and g. On average, deductibles for comprehensive were $100 in 2003 and increased to an average of $126.40 in 2010, according to a study done by Mitchell International. They have a theory that drivers may prefer to pay a little bit more for possible comprehensive claims than they would for claims filed for collision damage, which had a deductible increase of $100 to $110.25 from 2003 to 2010.
Speaking of collision damage, the question asking what does your policy pay for when it comes to collision damage, 23% answered correctly by choosing option a. Even if there are drivers that have never been involved in an accident, nobody is immune… including our favorite celebrities, with some of them seeming to be almost accident prone.
A third question was ‘What are the typical discounts auto insurance companies will offer if you qualify? (check all that apply)’. The options that they had to choose from were:
a. Low mileage
b. Using garage for vehicle
c. Anti-lock brakes
d. Anti-theft devices
e. “Good student” discount for a grade point average of 3.0 or higher
f. Lane-departure warning system
g. “Mature driver” (over 55) defensive driving course
7% of the respondents answered correctly with options a, c, d, e, and g. These are good discounts to have but there could be others. Aside from these typical discounts, car insurance companies may have discounts you have never heard of and non-typical discounts might differ depending on your car insurance company.
A fourth question was ‘What factors can car insurance companies typically use when setting rates for full coverage? (check all that apply)’. The options that they had to choose from were:
a. Your age
b. Your gender
c. Your address
d. The length of your daily commute
e. Your occupation
f. Your credit history
g. Your past accidents
h. Tickets you have received
i. The model of your car
j. The year of your car
k. The color of your car
8% answered correctly with options a – j. Like it or not, it seems that everything but the color of your car is taken into account when an auto insurance policy is being compiled. On a happier note, with discounts based on car models, the 2013 Ford Edge SE was ranked by Insure.com as the cheapest vehicle to insure. Other more affordable cars to insure are Jeep Grand Cherokee Laredo, Subaru Outback 2.5i Premium, Kia Sportage, and Jeep Patriot Sport.
A fifth question was ‘What does uninsured motorist (UM) coverage pay for? (check all that apply)’. The options given for this question were:
a. Claims you make even if you have been late paying your premium
b. Car damage to someone you hit who does not have insurance
c. Bodily injury to you and your passenger(s) if your car is hit by someone without insurance
d. Bodily injury to you and your passenger(s) if your car is hit by a hit-and-run driver
14% answered this question correctly with options c and d. Some might want to choose option b but if the uninsured or underinsured driver is not found to be at fault for the accident, then the UM coverage does not apply. When considering how much UM coverage to have make sure that you understand the use of that coverage. Also, do not let the agent tell you how much coverage they think you should have as they could specify a number lower or higher than you may need.
The remaining five questions, their multiple-choice options, the answers (italicized), and the percentage of how many answered correctly are below.
6. What does auto liability insurance pay for? (check all that apply) – 26% answered correctly
a. Damage to my car if I crash it
b. Damage to my car if an object falls on it, like a tree
c. Damage to my car if I hit an animal, like a deer
d. Damage to my car from a flood
e. Property damage to others if I cause a crash
f. Injuries to passengers in my own car
g. Theft of my car
7. What does Personal Injury Protection or Medical Payments coverage pay for? (check all that apply) – 41% answered correctly
a. Damage to my car if I crash it
b. Damage to my car if an object falls on it, like a tree
c. Damage to my car if I hit an animal, like a deer
d. Damage to my car from a flood
e. Property damage to others if I cause a crash
f. Injuries to passengers in my own car
g. Theft of my car
8. If your car is totaled, what does gap insurance pay for? (Select One) – 55% answered correctly
a. The difference between the “actual cash value” of the vehicle and the amount owed on a car loan
b. The difference between the “actual cash value” of the vehicle and the amount you paid for the car
c. The difference between the amount owed on a car loan and the amount you paid for the car
9. If a friend told you she has liability limits of 25/50/40, what does that mean? (Select One) – 69% answered correctly
a. $25,000 for damage to her own car, $50,000 for damage to someone else’s car, $40,000 for bodily injury payments
b. $25,000 for bodily injury to one person in an accident, $50,000 for bodily injury per accident, $40,000 for property damage
c. $25,000 if someone else’s car is totaled, $50,000 if her car is totaled, $40,000 for injury payments
d. $25,000 for bodily injury to her own passengers, $50,000 for damage to her car, $40,000 for damage to someone else’s car
10. If a friend borrows your car and crashes it, whose insurance pays? (Select One) – 71% answered correctly
a. Your friend’s insurance
b. Your own insurance
It is unknown how many people opt for car insurance purely because it is illegal to drive without it and do not pay enough attention to what they are, or are not, actually covered for. The more you know about your car insurance policy, the better off you are in your ability to make decisions regarding how much coverage you have. If you have any questions about what was asked in the survey or about your own car insurance, feel free to give us a call at 305-270-2100.
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At Filer Insurance, Inc., we have been serving Miami and South Florida since 1919. We specialize in miami car insurance as well as miami home insurance, miami life insurance and miami business insurance. Please give us a call, visit our website or come by our office for a free miami car insurance quote.
