Insurance 101: Uncovering common insurance myths
The insurance industry is riddled with myths and misconceptions that can have costly consequences for consumers.
How well does the average consumer really know insurance?
According to the Insurance Myths and Misconceptions report by insuranceQuotes.com, Americans have a thing or two to learn about insurance coverage and policies.
Common misconceptions
We have all heard the myth that red cars cost more to insure. But there are many other insurance myths ingrained in the minds of insurance customers that can have costly consequences.
“While we do our best to try to educate people on insurance, there are unfortunately still many pervasive myths and misconceptions that millions of American adults believe pertaining to different types of coverage, from auto and health coverage to homeowner’s and life insurance to even electric scooter coverage,” Jason Hargraves, managing editor of insuranceQuotes.com, said in a press release.
Across the board, more than a third of consumers surveyed incorrectly answered each question relating to different insurance coverage. From home insurance to life and health coverage, the report reveals a shocking gap in consumer knowledge, including:
- 68% of respondents believe collision damage is covered by comprehensive auto coverage.
- 35% believe a standard homeowner’s insurance policy covers flood damage; 34% believe it covers mold damage.
- 46% did not know life insurers can factor in pre-existing medical conditions when calculating premiums.
- 36% incorrectly think electric scooter riders are required to have liability insurance.
- 66% are unaware that women, on average, pay higher health insurance premiums than men.
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