One in Five Would Rather Slam their Hand in a Car Door than Shop for Insurance

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SAN FRANCISCO, Dec. 4, 2019 /PRNewswire/ --

Today the direct-to-consumer insurance company unveiled the results of its 2019 Consumer Insurance Aches & Pains report a study dedicated to exploring how people really feel about the insurance industry. The 2,000-respondent survey revealed the pain is real when it comes to dealing with insurance. In fact, one in five consumers admit they would rather slam their hand in a car door than shop for car insurance!
The pain doesn't stop there! The study confirmed three primary consumer pain points: Insurance is complex, confusing and expensive.

"At Esurance, we're committed to making insurance surprisingly painless for everyone, and that starts with understanding where the pain lies," said Jonathan Adkisson, President at Esurance. "Slamming your hand in a car door is pretty extreme, and undeniably painful. No one should ever prefer that experience to shopping for insurance, which should be easy, efficient and ultimately leave you feeling confident you and your family are properly protected. Our team is constantly working to address the most unsatisfying parts of insurance, so pain is never something that comes to mind during the process."

This study confirms there's a lot of work to be done in the industry to address consumers' major pain points when it comes to the insurance experience. Esurance is doing its part by continuing its mission to make insurance simple, transparent and affordable.

Simplicity

Let's be honest. Insurance is inherently complicated and needs to be simplified. Between all the jargon, coverage options and fine print, it can be a frustrating process for many consumers to get through. And, while comparing rates and reviewing coverage options is an important part of shopping for insurance, Esurance confirmed this is an area customers really don't enjoy—to say the least.

    The complexity of insurance may make it hard for people to stay focused. More than 75% of insurance owners multitask while dealing with insurance companies, including going to the bathroom!    One in three shoppers of drinking age would rather have a cocktail than a calculator when researching coverage options—a sign some people may be more concerned with just getting through the process than getting it right.
    Twelve percent of insurance customers feel shopping for insurance is the biggest time drain, even more than sitting in traffic, which is significant because 20% said they've sat in 1-2 hours of traffic in the past (for comparison, getting a quote can take as little as six minutes).

There's a clear need for more transparency around coverages so people feel confident they're properly protected. Coverage terms are confusing, and consumers don't always understand what they're buying since policies can feel like reading gobbledygook. Many customers aren't confident in their knowledge of important terms—and those who believe they do understand are overconfident in many cases. This not only leads to a painful experience, but also the possibility of getting the wrong coverage, which creates even bigger pains down the road.

    Nearly a third of consumers said they'd rather take a physics test than an insurance knowledge test.
    However, the 68% that do prefer to test their insurance knowledge may want to reconsider. Ninety-seven percent of respondents failed to separate at least one sports term from an insurance term!
    Consumers struggle with understanding insurance on their own. Twenty-nine percent of Millennials are likely to consult three or more resources for guidance on their insurance policy, and the majority (57%) of all consumers turn to sources such as a spouse, their parents, friends or co-workers to help them understand something about their insurance.


Just because cars and homes cost a pretty penny doesn't mean people think their insurance should. Price is typically the top concern when it comes to purchasing insurance—and affordability is something consumers want across the board. Insurance is so essential some coverages are required by law, yet many don't feel it's valuable and want to be paying less for their coverage. However, when it comes to using insurance, people are relieved they have it and understand its worth.

    More than one third of consumers feel what you get isn't necessarily worth what you are paying for, rating the value of insurance a six out of 10 or lower, with 10 being completely valuable and zero as not at all valuable. 

    Nearly 40% of consumers express dissatisfaction with their current rates or prices, rating their satisfaction as a five out of 10 or lower, with 10 being very satisfied and zero being very dissatisfied.
    Seventy-seven percent of customers said not having the coverage they need in an accident would be more terrifying than accidentally sending a snarky text to the person they were talking about, so there is a distinct fear around not being properly covered.
    There is a small group who do realize the overall value of insurance. Twenty-three percent of insurance owners stated they find insurance "completely valuable."

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PALO ALTO, Calif., Aug. 17, 2021 /PRNewswire/ -- VOOM, the leading InsurTech company for new mobility, announced today that it has launched its first per-mile insurance offering for motorcycles in select states*, as permitted by law, in collaboration with member companies of Markel® (Markel), insurance carriers dedicated to providing customized insurance solutions for a variety of insurance products. With over 90 years of experience in niche insurance markets and over 45 years in motorcycle insurance, Markel features motorcycle-specific coverage tailored to help meet the needs of motorcyclists and how they ride. VOOM will distribute the per-mile product both directly to riders and via select partners and Markel will provide underwriting expertise and prompt claims handling.

Motorcycle riding is often seasonal, irregular, and spontaneous, which means that many riders end up paying high insurance costs when their motorcycles sit in the garage for weeks and even months at a time. According to recent research conducted by VOOM based on reported insurance claims, the risk associated with low-mileage riding can be more than 80% lower than that of high-mileage motorcycling, but traditional insurance policies are annual across the board. Riders who want to avoid insuring idle bikes have to either request lay-ups, which are limited and forbid riding, or cancel their policies entirely.

With this new offering, riders can pay a low monthly base rate determined by certain factors, such as the type of motorcycle they ride. The offering does not require a physical device or mobile app to track mileage or behavior. Instead, riders simply submit a photo of their odometers every month.

Coverage is accompanied by online policy management, and varied other coverage options available to qualified riders, including liability, comprehensive, medical payments, collision, uninsured motorists, and accessory coverage. Per-mile coverage is especially ideal for motorcyclists who travel short distances or ride only on occasion, and enables them to customize their insurance all year round and pay for the time they ride instead of predetermined rates.

"We are excited to be providing motorcyclists with flexibility through this per-mile motorcycle insurance product," said Tomer Kashi, CEO and Co-Founder of VOOM. "Enabling cost-effective insurance options for riders and drivers is our top priority. We look forward to spurring further growth across mobility, particularly in otherwise overlooked parts of the industry."

"Markel is thrilled to collaborate with VOOM to help introduce per-mile insurance to motorcycle riders," said Jeff May, Executive Underwriting Officer, Markel. "We've been providing specialized motorcycle coverage for years, and due to the seasonality of the motorcycle riding season, this is a natural progression in the evolution of motorcycle insurance. VOOM's innovative technology and customer centric approach, combined with Markel's specialized motorcycle coverage, make this a product that we hope will bring motorcycle insurance to the next level for riders."

*Insurance and coverage are subject to availability and qualifications and are currently available in Arizona, Illinois, Indiana, and Ohio. Insurance is underwritten by Markel American Insurance Company.