Knowledge of Vehicle Insurance Coverage Helps Reduce Your Premiums
The majority of motorists on the road will need to purchase an vehicle policy at some point in time. With vehicle insurance coverage being such an important product that can protect assets and pay for expenses resulting from traffic accidents, it is important to choose options carefully. Unfortunately, studies show that many consumers do not fully understand the policy that they have purchased and what may be covered by an insurer following an accident.
Having a good understanding about one’s protection plan is an essential way to maintain the proper levels of coverage and remain aware of possible charges. The National Association of Insurance Commissioners (NAIC) conducted the Insurance Intelligence Quotient Study in 2010 which indicated that some people know very little about their policies. According to the survey, Americans are becoming less confident with their coverage related decision making, which has now reached a level of 45%. During the survey consisting of a thousand people, on average, participants answered only 4 out of 10 questions correctly. 86% of Americans were unaware that when their liability is stated as 100/300/100, that the final number in the sequence represents what the insurer will pay for third party property damage sustained in an accident. With nearly three-fourths (75%) of Americans admitting to taking the cost of maintaining a policy into consideration when planning their annual household budget, drivers should become better educated in policies they purchase.