Survey Shows That Americans Know Very Little About Insurance Policies
A new survey conducted by PolicyGenius reveals that while many Americans may believe that they understand their insurance policies, in fact, they do not, resulting in the mistaken belief that they are often the victims of bad faith insurance decisions. Unfortunately, this mistake could end up costing policyholders a fortune: Not only did the survey find that only four percent of policyholders were able to correctly define the terms that correlate their co-pays, but most individuals did not understand the basics when it comes to co-pays, deductibles, and out-of-pocket maximums, even though they were overly-confident of their understanding. Unfortunately, not only are consumers overconfident about their own out-of-pocket costs, many aren’t confident at all when it comes to selecting the right insurance plan for their needs. This results in policyholders not only being at risk of choosing the wrong insurance plan, but also misunderstanding their exposure to charges when they receive treatment. Thus, while many people may allege that their health insurance company is refusing to pay for treatments in bad faith, in reality, it is a misunderstanding of how deductibles and coinsurance works for particular procedures or tests that are behind the charges that consumers are so often frustrated by, and which are sometimes the subjects of bad faith insurance litigation. It is only logical, then, to apply this to other forms of insurance—such as motorist and homeowners insurance. The Cause Studies have found that this lack of knowledge can be directly attributed to people spending very little time selecting and signing up for the right health plan. Given that reading and comprehending any insurance plan can be overwhelming, time-consuming, and stressful, it’s no wonder that so few understand their insurance coverage in general. Many people simply seek out the same company or plan that a coworker or family member has in an effort to avoid the selection process altogether. As health insurers work to improve their engagement with customers and the general public, the fact that only a small percentage of people understand the basics when it comes to out-of-pocket liability still remains a huge hurdle when it comes to resolving disputes between the insurer and insured. Liability Coverage When it comes to selecting an insurance plan—whether you are seeking to protect your home or health—comprehending the liability section is very important. This doesn’t just apply to individuals; businesses, for example, are covered under commercial general liability to protect them against the risks associated with running their business. When it comes to your policy, understanding the duty indemnify—i.e. the insurer’s duty to cover the insured’s legal liability up to the state policy limit—and the promise to defend—i.e. the insurer’s promise to hire legal counsel to defend the insured in any lawsuits—is extremely important in terms of ensuring that you, as the policyholder, have complied with the terms of the policy. Experienced Attorneys Representing Insurance Companies HD Law Partners represents insurance carriers where there are good faith disputes concerning coverage, liability, damages and related issues. Our Tampa insurance defense attorneys also provide legal representation in defending claims alleging insurance bad faith and plaintiffs seeking extra-contractual liability. Contact us today and find out how we can help. Resources: policygenius.com/health-insurance/learn/health-insurance-literacy-survey/ cnbc.com/2016/11/04/many-americans-dont-know-much-about-health-insurance–and-it-will-cost-them.html Tags: Florida Homeowners Insurance Lawyer, Florida Homeowners Insurance Lawyers, Insurance Bad Faith Litigation, Insurance Coverage, Insurance Policy, Liability Coverage, Tampa Insurance Defense Attorney, Tampa Insurance Defense Attorneys Posted in Homeowners Insurance, Insurance Defense | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us