Always a Fun Story — Auto Insurance Misconceptions

U.S. News & World Report recently did a study on drivers and driving. It’s a fascinating look at something most of us do, and have been doing, for a large portion of our lives.

The survey looks at bad driving habits and driving misconceptions.

This week, Weekly Industry News looks at how confused a lot of us are about how our auto insurance works. The stats are somewhat of a shock but not surprising.

The item that stood out most is the number of people that don’t understand how credit scoring works, and how it impacts the amount they are charged for auto insurance.

* 51% don't know how credit scoring works

The statistic is very important considering the trouble Washington insurers had with insurance commissioner, Mike Kreidler who unilaterally banned their use a couple of years ago and threw the state’s auto insurance industry into chaos.

Kreidler has since been stopped by the PIA Washington and other insurance associations who challenged Kreidler in court.

Anyway, we thought you’d find these statistics hilarious.

• *24% incorrectly think vehicle color helps determine the rate of insurance premium
• *69% don't know their marital status can impact the price of auto insurance
• *53% think a parking ticket will impact the rate they pay for insurance
• *51% don't know where they live, and what state, impacts the cost of auto insurance
• *38% don't know auto make & model impacts the price they pay for auto insurance
• *32% don't know their age impacts how much they pay for auto insurance
• *28% incorrectly think income has influence on how much they pay for auto insurance