Anatomy of a car insurance buyer: Learn what drivers like you purchase
August 13, 2014 (Foster City, CA) – Three out of four drivers choose a $500 deductible when they shop for collision and comprehensive insurance.
About 21 percent of married drivers want to buy towing and rental reimbursement; 13 percent of single drivers do.
And 32 percent of drivers under age 25 shop for the lowest legal amount of liability coverage, but only 19 percent of drivers over 55 do.
A new analysis of more than 500,000 car insurance quotes delivered through Insurance.com, the car insurance comparison-shopping website, reveals big distinctions among states, drivers and age groups.
“Minimum coverage is OK for some folks and not so much for others. And people looking to save money always wonder when to drop comp and collision,” said Insurance.com managing editor Des Toups. “Looking at what most people in your situation do can be very helpful.”
The wide differences in drivers’ needs led to the auto insurance coverage calculator, which offers consumers a look at what others in their state with similar profiles – homeownership, age, model year of vehicle – are shopping for. Nationwide, the most common coverage profile looks like this:
- Most common bodily injury liability coverage: $50,000 ($100,000 per accident), selected by 46 percent of all drivers.
- Most common property damage liability coverage: $50,000, selected by 59 percent of all drivers.
- Collision coverage, selected by 60 percent of all drivers.
- Comprehensive coverage, selected by 61 percent of all drivers.
- $500 deductible, selected by 74 percent of drivers who buy comprehensive and collision.
- Towing and emergency road service, selected by 16 percent of all drivers.
- Rental reimbursement coverage, selected by 16 percent of all drivers.
Those numbers change substantially from state to state and among drivers, Toups said. Those with more to lose often opt for larger amounts of coverage. For example, in California, the most common amount of bodily liability coverage sought by homeowners is $100,000 or more. In Texas, it’s $50,000. Single Florida renters under 35 most often buy $25,000 or less.
About 96 percent of drivers with cars six years old shop for comp and collision – the physical damage coverage that pays to repair or replace your car – but only 60 percent with cars 10 years old do, as car loans are paid off and vehicle value drops to a level that makes owners reconsider the risk.
“Insurance is daunting, and there’s a temptation for many to cross their fingers and hope for the best,” Toups said. “But we think that knowing what your peers are doing is a smarter place to start.”
Insurance.com analyzed online quote information submitted by 557,238 drivers in July 2014.
Insurance.com, based in Foster City, Calif., is an online resource where consumers can compare side-by-side, real-time auto insurance quotes from multiple insurance carriers. Since its inception in 2001, Insurance.com has delivered nearly 11 million quotes to consumers – who, in less than 10 minutes, fill out one form and save an average of $540 annually – making it one of the largest independent insurance marketplaces in the U.S. Participants include some of the biggest names in auto insurance, including Progressive, Esurance, The Hartford, Travelers and 21st Century. Experts from Insurance.com are available for interviews on all issues pertaining to auto insurance.
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