Chubb Survey: Drivers lack knowledge about their auto policies
Survey highlights how consumers purchase auto insurance & looks at their concerns over safe vehicle repairs & coverage benefits; yet many are not aware of their policy's limitations.
WHITEHOUSE STATION, N.J., March 5, 2020 /PRNewswire/ — New data from Chubb 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.
Chubb is the world’s largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs more than 30,000 people worldwide. Additional information can be found at: chubb.com.