Since car insurance is a very costly endeavor for both car drivers and owners, it is expected of them that they should know what they enter and what the insurance covers, even if at least the most basic of things.
But a recent study showed that most car insurance holders do not know what their car insurance contract contains. The study, which was done by a research company known as Canstar, deduced that a third of New Zealand drivers are victims of this lack of knowledge.
While it is hard to conclude based on the numbers the abovementioned company surveyed, it is very telling since 32 percent of those people involved of over 1,000 in numbers admitted that they have not read the contract.
This resulted, the surveyors explained, to the lack of understanding of car insurance holders of what the coverage of their premiums is. Moreover, their lack of understanding of the insurance coverage makes way for them not to mind whether they will meet unforeseen accidents or not.
The surveyors, meanwhile, still said that while they only found out a fraction of the total population, this could even be higher and the dilemma more pressing. In related research done in Australia in 2014, it found out that half of the people do not bother to read their insurance policies.
One of the reasons for this, according to Australian research, is that insurers trust their advisors more than ever.
Several analysts, however, disagreed since it is the duty of the one who bought to at least know the basic of what they purchased so they will not be fooled or rigged in the long run.
Since these two studies found out the same thing, they advised future car insurance applicants to be more keen of the most essential details on their contract before signing because it is their responsibility to equip themselves with it.