Many Americans are confused about car insurance

A new quiz tests Americans' understanding of what their auto insurance covers.

By MSN Money Partner May 27, 2014 1:01PM

This post comes from Krystal Steinmetz at partner site Money Talks News.

Money Talks News on MSN MoneyIf your friend borrows your car and gets in an accident, whose insurance will pay for the damage?

Businessman talking on his cell phone by a car accident © Stewart Cohen, Blend Images, Getty ImagesThat wreck will count as a claim on your insurance record. If you thought your friend's insurance would pony up, you're wrong. But you're not alone. It turns out nearly 30 percent of people answer that question incorrectly.

A new "Dentmaster" quiz by reveals just how much (or little) Americans know about their auto insurance. According to

Survey results show the most confusion centers on liability insurance -- which is the coverage required by most states. When asked, "You hit someone else. Which coverage pays the other driver?" only 46 percent of drivers could correctly identify liability from three answer choices.

Overall, American drivers answered about 39 percent of the questions wrong, said.

Knowledge of liability, collision and comprehensive coverage is essential to buying the right policy. Finding out after an accident that you didn't have the right coverage could cost you thousands of dollars.

You can test your knowledge of your car insurance by clicking here.

How does your insurance knowledge rate?

More from Money Talks News


May 27, 2014 1:12PM
If "so many" people are confused about a relatively simple concept such as car insurance then how can these people begin to comprehend health insurance? 
"Hey, wow, man! How come this policy don't cover pre-existing conditions?!"
For anyone who cares: look up the definition of "adverse selection".
May 28, 2014 7:53AM
Most Americans are just confused. Hence obo and liberals in general.
May 27, 2014 1:49PM
billy bob tea party doesn't need to know anything..........YOU will pay his way
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