[lg policy] "language policy" vs. "policy language" in the insurance industry: Cryptic Policies Confounding Drivers

[Harold Schiffman]

Confusing wording makes auto insurance policies incomprehensible to
36% of American drivers, according to a survey.

Insurance Networking News, May 20, 2011

Alex Vorro

Customer service is always of critical concern to insurance carriers,
but perhaps one area that they may be overlooking is whether or not
the wording of policies is intelligible to the average American
consumer.

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And, according to a recent InsuranceQuotes.com survey, this may
already be a growing problem. The online poll, conducted by Harris
Interactive, found that more than one-third of insured American
drivers who have read at least part of their auto insurance policies
have had trouble deciphering them.

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The survey revealed that 87% of drivers who currently have auto
insurance said they had read at least some of their auto insurance
policies, but that 36% of those drivers complained that their auto
insurance policies were somewhat or very difficult to understand.

Despite the fact that greater than 30 states have enacted laws
intended to simplify policy language, the online quote aggregator says
that many consumers are confused by how their policies are written,
and struggle to determine what's covered and what's not.

Many consumers still have trouble recognizing the difference between
comprehensive and collision coverage.

“If you ask someone what comprehensive means, they think it’s
everything, but it only covers certain damages to your car,” says
Robert Hunter, insurance director at the Consumer Federation of
America, adding that even policies written in plain English are above
the average person’s grade level.

The online survey was conducted from Feb. 24-28, 2011, among 2,366
adults aged 18 and older—2,107 are current drivers, and 2,079
currently have auto insurance.

For more information about the poll and the readability of insurance
policies, click here.

For more information on related topics, visit the following channels:

    * Customer Service
    * Policy Administration

http://www.insurancenetworking.com/news/auto_insurance_quotes_customer_service_policy_language-27966-1.html
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