1. Drivers who know more about insurance tend to pay less
Thirty-eight percent of survey respondents said they pay a premium of $100 or less per month for car insurance ($1,200 per year, which is less than the national average of $1,427), while 8% said they pay more than $200 per month.
While few of the car insurance customers who responded to the survey scored well, those who pay the lowest rates showed a better understanding of insurance coverage and terms.
Q: What covers damage to your vehicle in the event of an accident caused by a person who does not have insurance?
Premiums $100 or less: 66% answered correctly
Premiums $200 or more: 60% answered correctly
Q: What covers damage to your vehicle in the event of an accident caused by another insured driver?
- Comprehensive coverage
- Uninsured motorist coverage
- A: Liability coverage (theirs)
- GAP insurance
- Umbrella insurance
Premiums $100 or less: 37% answered correctly
Premiums $200 or more: 23% answered correctly
Q: What is the maximum amount you pay out of pocket for vehicle repairs before your insurance company pays any amount?
- Full coverage
- A: Deductible
- GAP insurance
- Medical payments coverage
Premiums $100 or less: 78% answered correctly
Premiums $200 or more: 64% answered correctly
Those paying higher car insurance premiums also had a harder time identifying common insurance myths.
Myth: I can only switch car insurance companies at the end of my policy term.
Fact: You can switch car insurance providers at any time — even in the middle of your policy term — and your insurance company will reimburse you the prorated premium you didn’t use. Just remember to have a new policy in place before you drop a previous one as it can damage your insurability to be without coverage — even for one day.
Premiums $100 or less: 29% believed the myth
Premiums $200 or more: 40% believed the myth
Myth: There is nothing I can do to lower my car insurance rates.
Fact: Insurers use a broad variety of risk factors to determine how much you pay for car insurance. You don’t have control over some factors — like your age — but you do have influence over others, like maintaining a good driving record, paying your premiums in full and on time, and improving your credit score.
Premiums $100 or less: 32% believed the myth
Premiums $200 or more: 38% believed the myth
Myth: The color of your car affects your car insurance rates.
Fact: While many factors about your car affect your insurance rates (including its age and security options), color is not taken into consideration by insurers.
Premiums $100 or less: 21% believed the myth
Premiums $200 or more: 23% believed the myth