A new survey by Forbes Advisor suggests that most people really have no clue about what their auto insurance covers and doesn’t cover. Why most drivers are misinformed about what their car insurance covers is beyond the scope of the survey, but we share this information with you because we often see the after effects of it.
In the survey, only 3% of drivers knew that none of the standard insurance types would cover the injuries suffered by an uninsured motorist who crashed into their vehicles. The uninsured motorist insurance clause only covers injuries sustained by the POLICY HOLDER.
57% of drivers didn’t know that collision coverage will pay for vehicle damage if they accidentally backed into a pole. This only underscores the need for you to read and understand what your insurance covers and doesn’t cover.
Surprisingly, in the same survey, 69% of respondents truly believed that their auto insurance would cover “additional living expenses”… which is not a thing. 68% thought that their insurance would cover “extended crash protection”, which is also not a thing.
In the end, this survey simply reminds all of us that it’s critical to be aware of what your insurance will and will not cover. And when you discover that information, it’s often the case that you find out that your insurer isn’t so much a “good neighbor” and you’re probably not “in good hands” like you thought you were.
Here at RR/C, we stand ready to help you understand what your insurance covers and doesn’t cover. Stop by, contact or give us a call any time. We are always happy to help you work through the best course of action for you – even if you’re not our customer. If you need better coverage, we’ll always be sure to let you know. And similarly, if you’re doing a great job with the insurance that you already have, we’ll tell you that, too.