Ask the Industry Experts - Average cost of car insurance in 2021 by Cate Deventer, Bankrate
Do insurers and other information sources do an adequate job of bridging the knowledge gap between consumers and the insurance policies they are often obligated to buy?
We asked Dr. Inga Timmerman, Associate Professor & Dr. Mary Jean Scheuer Endowed Professor of Finance at CSU Northridge:
"There are many resources out there but a typical person needs to want the commitment and have the time to understand it. It is not easy and it is overwhelming. In my personal finance class, I do an exercise where I ask students to figure out from their policy how much they would need to pay in case of an accident. More than 50% do not know where to start looking for this information."
Is the average consumer well educated about their auto insurance policy?
"No, unfortunately, the average consumer is not familiar with the policy and coverage. Many people believe that if they buy some insurance, they will be OK in case of an accident, when the reality is very different. There are so many details that need to be decided when buying insurance, education (and the time spent on educating yourself) are very important."
- Inga Timmerman, Associate Professor & Dr. Mary Jean Scheuer Endowed Professor of Finance at CSU Northridge