Close

Survey: Most Americans Do Not Fully Understand Insurance Coverage...Yet 86% Say They Do

June 18, 2024 12:34 PM EDT

Trusted Choice® study reveals critical need for independent agents to help consumers navigate nuances of the insurance market.

ALEXANDRIA, Va.--(BUSINESS WIRE)-- Consumers have many questions about insurance coverage, and a new survey shows that even the most discerning policyholders do not fully understand the intricacies. Ahead of National Insurance Awareness Day on June 28, Trusted Choice–the national consumer brand representing the members of the Independent Insurance Agents & Brokers of America (the Big “I”)–surveyed consumers about their insurance acumen.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240618486693/en/

Trusted Choice®, the national consumer brand representing the members of the Independent Insurance Agents & Brokers of America (the Big “I”), surveyed consumers about their insurance acumen. (Graphic: Business Wire)

Trusted Choice®, the national consumer brand representing the members of the Independent Insurance Agents & Brokers of America (the Big “I”), surveyed consumers about their insurance acumen. (Graphic: Business Wire)

While 86% of respondents said they had a strong understanding of what their policies covered, when their knowledge was put to the test many were incorrect or unsure about coverage specifics.

"Because insurance protects people’s most important assets, it’s crucial that policyholders understand their coverage. But unfortunately, our survey shows there is a considerable insurance knowledge gap among consumers,” said Charles Symington, Big "I" president and CEO. “Independent insurance agents can bridge that gap by serving as a resource on coverage expectations versus realities, especially in this difficult insurance market where many people need more guidance.”

SURVEY RESULTS

According to the survey:

  • Flood Damage: 56% of Americans are unaware that a standard homeowners policy does not cover flood damage.
  • Home Renovations: 70% are unaware that a standard homeowners policy does not cover materials or fixtures that are to be installed during renovations.
  • Home Inventory: 46% do not have or are unsure if they have a home inventory of major household items in case they need to file a claim.
  • Business Use of Vehicle: 55% are unaware that a standard auto policy does not cover business use of the vehicle.
  • Items Stolen from Vehicle: 44% incorrectly believe that personal items stolen from their car are covered by a standard auto insurance policy, though it is in fact a standard home or renters insurance policy that typically covers such theft.
  • Parking Tickets: 57% are unaware that a parking ticket, in general, won’t affect a driver’s auto insurance premiums.

THE ROLE OF AN INDEPENDENT AGENT

“Insurance coverage can be confusing. Consumers often think they have a strong grasp on understanding their policies, but oftentimes they don’t. An independent agent is best equipped to walk consumers through the entire process–from shopping for coverage to purchasing a plan and filing a claim,” added Kevin Brandt, executive director of Trusted Choice. “With their unbiased guidance and personalized approach, they empower individuals to navigate policies with clarity and confidence, ensuring they truly understand their coverage and make informed decisions."

To find a Trusted Choice independent agent, visit www.trustedchoice.com.

Methodology

National survey via mobile targeting of 400 consumers who have home, auto, pet, jewelry and/or personal umbrella insurance.

About Trusted Choice® and the Big “I”

Trusted Choice® is the national consumer brand representing the members of the Independent Insurance Agents & Brokers of America (the Big “I"). Founded in 1896, Big “I” is the nation's oldest and largest national association of independent insurance agents and brokers. Trusted Choice independent agents offer consumers all types of insurance—property, casualty, life, health, employee benefit plans and retirement products—from a variety of insurance companies. There are over 25,000 member agencies nationwide offering customized advice and solutions to families and businesses. Learn more at trustedchoice.com and independentagent.com.

Media: Gillian Linden
[email protected] / 703.402.6507
www.independentagent.com

Source: Trusted Choice



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Business Wire, Press Releases