Survey finds drivers lack knowledge about their auto policies

Policyholders should seek out agreed value coverage where the value of their car is determined and guaranteed before a covered loss. Metro News Service photo

Policyholders should seek out agreed value coverage where the value of their car is determined and guaranteed before a covered loss. Metro News Service photo

WHITEHOUSE STATION, N.J. – New data from Chubb, a property and casualty insurance company, reveals that drivers do not fully understand their auto insurance, with more than half saying they would not be able to explain specific details and coverages of their policy.

The survey highlights the importance of auto insurance education among successful individuals and families, as many drivers are not well-versed on what their policies allow.

For example, according to the survey, 91% responded that it was essential or very important for their vehicle to be repaired back to pre-claim condition, yet 32% of respondents weren’t sure or didn’t believe their insurer would pay for their vehicle to be repaired with original equipment manufacturer (OEM) parts.

And 82% of respondents confirmed that they thought it was very important or essential that their auto insurer pays for their vehicle to be repaired with OEM parts, yet not all insurance policies cover such costs.

“The most important thing a driver can do is choose an insurance policy that provides them with peace of mind in the event of an accident,” said Fran O’Brien, division president, North America Personal Risk Services at Chubb. “Our recent survey results, coupled with newly created Chubb auto resources, are meant to help agents and brokers address everyday pain points with their auto clients and help them to make informed decisions on their auto insurance policies.”

Chubb strongly encourages drivers to look for coverage that provides the highest repair standards, including the use of OEM parts and collision repair experts specially trained to get a car back to pre-claim condition.

In addition, policyholders should seek out agreed value coverage where the value of their car is determined and guaranteed before a covered loss. Furthermore, drivers should work with their independent agent or broker to ensure their policy offers them choice in a service repair shop and also provides them with a similar rental vehicle while their car is under repair.

Additional survey findings include:

  • 22% believe they'll be able to repair their car wherever they want, but may have to pay extra to use a shop outside of their insurer's collision repair network.
  • 38% weren't sure or didn't think their insurer covers a similar vehicle rental during car repairs.

To learn more, visit: https://www.chubb.com/us-en/individuals-families/products/auto-insurance/car-insurance.aspx.

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