Survey Indicates Some Consumers Uninformed About Auto Insurance Coverage

Man putting money into piggy bankA recent survey indicates consumers may be in the dark when it comes to certain facts about auto insurance, including what is covered and how they can save money.

The MetLife Auto & Home Insurance Literacy Survey showed 52 percent of respondents thought totaling a new vehicle in an accident soon after purchasing it would lead to their insurer’s paying for the full cost of the automobile. In fact, most providers would account for the depreciation and subtract the deductible.

Also, 56 percent of respondents said they thought items like batteries, tires and shocks would be paid for in full after an accident. MetLife notes that, through most policies, depreciation is taken into account for these items as well.

MetLife Auto & Home President Bill Moore said these misunderstandings about vehicle coverage can be cured by taking the time to learn about how policies work.

“An important way to secure this peace of mind is by truly understanding what’s actually covered -and not covered – under your auto insurance policy,” Moore said. “That can make all the difference at the time of a claim.”

Saving money is also an issue some respondents were ignorant about. While 93 percent knew about good-driver discounts, only 63 percent of those polled realized they could get less expensive auto premiums by carpooling, capping annual mileage or cutting down their commute.

Another money-saving strategy many respondents didn’t know about was that they might be able to get the cheapest auto insurance rates by purchasing coverage through their workplace. Only 19 percent knew this was a possibility. MetLife noted consumers may save as much as 28 percent by doing so.

Discounts may also be available from providers for being a member of a particular organization, such as a college alumni association.

Other options consumers may not be aware of regarding discounts include enrollment deductions, which companies may grant for switching to their car coverage. Meanwhile, some providers may offer loyalty discounts for sticking with them.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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