What do you know about auto insurance?
When 1,000 American adults were recently asked some basic questions about auto insurance, the survey revealed a surprising degree of misinformation. To begin with, 44% of the respondents (and about 53% of millennials) wrongly believed that a vehicle’s color had an impact on its auto insurance rate. Moreover, 37% of respondents overall (and 52% of those aged 18-29) erroneously thought that repairs to their vehicles would not be covered if they caused a collision. In addition, about 34% of respondents wrongly believed that belongings stolen from their vehicles would be covered by auto insurance. Clearly, many people have misconceptions about auto insurance coverage, which could affect their ability to get the most benefit from their insurance.
NOTE: According to the survey mentioned above, half of consumers know that, if a vehicle is totaled, the insurer pays the insured what the car was worth before the crash.