Funny car insurance commercials may lead some consumers to make some serious mistakes when selecting coverage, according to a survey by Erie Insurance.
Seventy-four percent of survey respondents admitted they tended to forget about quality of coverage with the onslaught of funny auto insurance ads focused on price.
"People are making very serious decisions about their financial well-being based on punch lines," Cody Cook, vice president and product manager at Erie Insurance, said in a press release. "Insurance is complex. Making a decision based on price alone and without the consultation of an insurance expert can have serious repercussions."
More than half of survey respondents admitted that even after they bought car insurance, they still weren't certain they had made the right decision. When asked to define basic insurance terms, 48 percent thought liability or comprehensive coverage paid for the damage they caused to their vehicle if they were at fault in an accident. In reality, it's collision coverage that pays for the damage in that case.
Fifty-four percent of respondents thought either "affirmation" or '"premium" was the term for changes or additions to a policy. The correct term is an "endorsement." Affirmation isn't an insurance term, and premium is the periodic payment a policyholder makes for coverage.
The online survey of 360 adults has a 5 percent margin of error and was commissioned by Erie Insurance in February. Erie Insurance is the 12th largest auto and 14th largest home insurer in the United States, based on direct premiums written, according to A.M. Best.