Posted : 03/07/2013
Pop quiz: What will comprehensive car insurance coverage pay for? If you're not sure, you're not alone. A lot of people know very little about auto insurance, based on Insurance.com's car insurance test results.
We asked 500 drivers 10 multiple-choice questions about the basics of car insurance coverage. The average score was 32 percent.
Our findings indicate that many drivers have no idea what they're buying when purchasing auto insurance.
Here are the percentages of people who answered each question correctly:
1. What does comprehensive coverage pay for? -- 2 percent
2. What are typical discounts auto insurance companies will offer if you qualify? -- 7 percent
3. What factors can car insurance companies typically use when setting rates for full coverage? -- 8 percent
4. What does uninsured motorist (UM) coverage pay for? -- 14 percent
5. What does collision coverage pay for? -- 23 percent
6. What auto liability coverage pays for? -- 26 percent
7. If a friend told you she has liability limits of 25/50/40, what does that mean? -- 41 percent
8. If your car is totaled, what does gap insurance pay for? -- 55 percent
9. What does Personal Injury Protection or Medical Payments coverage pay for? -- 69 percent
10. If a friend borrows your car and crashes it, whose insurance pays? -- 71 percent
Women scored higher
In our analysis of results by gender, age, region and level of self-described insurance knowledge, no group scored higher than 39 percent. Here are the notable average scores by demographic:
Is a lot of car insurance knowledge a dangerous thing?
It's no secret that some people don't read their car insurance policies to check their coverage and discount details. But what's surprising is that drivers who never read their policies scored the highest in basic knowledge.
Here are the key findings among drivers who read their policies compared to those who didn't:
Also unexpected -- drivers who rated themselves as having "excellent" car insurance acumen scored the lowest.
Here's the breakdown of confidence levels:
Insurance.com commissioned a survey of 500 drivers age 18 and older and asked 10 multiple-choice questions on the basics of car insurance. The survey was fielded in January 2013.
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