Survey shows many car insurance shoppers confused by terms - homeinsurance.com (blog)

March 20, 2012
By: Carrie Van Brunt-Wiley

While auto insurance advertisements are very prevalent on television and other places, a recent survey found that many people are still very unclear about some of the more basic car insurance terms.

A recent poll conducted by Erie Insurance found that 48 percent of people incorrectly thought that liability or comprehensive coverage paid to fix their vehicle if they hit something while driving. The majority of people thought that additions to a policy were called affirmations or premiums, while the actual term is an endorsement.

Advertising only furthered that confusion, as more than 70 percent of people said that humorous advertisements had made them think less about the actual coverage they were buying.

"People are making very serious decisions about their financial well-being based on punch lines," said Cody Cook, vice president and product manager at Erie Insurance. "Insurance is complex. Making a decision based on price alone ... can have serious repercussions."

Many people also choose to drive without auto insurance, even though it is legally required in almost every state. The Insurance Research Council said that in 2009, 13.8 percent of drivers were uninsured.

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