Survey shows that half of its respondents are confused about insurance issues
Insure.com has released the results of its latest survey focused on the insurance sector. The survey collected information from some 2,000 adults and aims to shed light on the confusion that some people have regarding their insurance coverage. The survey asked respondents 10 true or false questions. The correct answers to all of these questions was false, but more than half of the survey’s respondents expressed confusion about the insurance issues highlighted in the survey.
52% of respondents are unsure how properties should be insured
Some 52% of respondents were confused about how they should properly insure a property. Many believed that a home should be insured for its market value. For homeowners, this could create a situation in which their properties are underinsured. Typically, a property should be insured on the basis of reconstruction costs rather than the property’s market value. This is dependent upon the location of the property, of course.
Auto insurance is also a confusing matter for many people, with some believing that the color of a vehicle affects insurance rates
Approximately 45% of respondents believed that the color of their car affected the price of their auto insurance coverage. Many also believed that an insurance company can immediately terminate their policies if they are responsible for a severe car accident. Regulations exist that force insurance companies to wait until the policy coverage period is over before they can choose whether or not to continue offering coverage to a consumer.
Consumers are still confused about what the Affordable Care Act does and does not do
The survey shows that many people believe that the Affordable Care Act allows health insurance companies to base their rates on pre-existing conditions, such as high blood pressure. This is not the case, however, as the federal law specifically prohibits insurance companies from basing their rates on pre-existing medical conditions. There are numerous factors that contribute to the overall cost of insurance coverage. In many parts of the U.S., insurers are not allowed to use socio-economic information when pricing their policies.