What the Generations Know about Insurance Coverage — Not Much

The insurance quote service, Guardian Service wanted to know what people know about insurance. What the company found is most consumers think they know a lot about the insurance they purchase.

Reality? We don’t know all that much.

Guardian Service’s survey found 85% of homeowners claiming they are extremely to moderately confident they know a lot about home insurance. So the company gave them a five question insurance survey and found only 29% could correctly answer all five questions.

And these are just basic insurance questions, nothing all that tricky.

With 49% of the surveyed saying they are very confident in their insurance knowledge, Generation Z — those born between 1997 and 2012 — are the least proficient of all the generations as 72% of them failed the questionnaire completely. Only 28% passed the test and just 13% answered all five questions correctly.

Millennials did a little better with 58% passing the test and 25% correctly answered all the questions.

Guardian Service personal lines producer, Kara Credle said the Baby Boomers and Generation X did best. Baby boomers had 90% getting a passing grade and 80% of Gen Xers passed the test.

When it came to perfect scores, 37% of both generations aced the test.

“A lot of homeowners don’t think too much about their insurance until it’s time to file a claim and they realize they misunderstood what their insurer covers and what they’re left to deal with,” she said. “Policy language can be confusing, and the fine print isn’t always easy to navigate. That confusion can lead to costly surprises. Insurance should offer peace of mind, not uncertainty, and that starts with making the details clear from the beginning.”

The most common mistakes that all generations shared:

• 68% couldn’t define actual cash value
• 25% confused premiums with deductibles

Source link: PropertyCasualty360.com — https://bit.ly/4mAO1ap