Dover – In these uncertain financial times, knowledge is your best policy — especially when it comes to insurance. According to a new survey commissioned by the Delaware Department of Insurance and the National Association of Insurance Commissioners (NAIC), a vast majority of Americans believe they are smart about insurance, but a deeper look at the issue tells a different story. If you, too, believe you have a high “Insurance IQ,” see if you can answer these three basic questions:

1. Does auto insurance automatically cover a rental car?
2. Can you own a house without homeowners insurance?
3. In general, how much life insurance is recommended in relation to your annual salary?

If you answered, no, yes and 5-7 times your annual salary, you bested the majority of 1,000 American adults who got them wrong in a 10-question quiz designed to test the nation’s Insurance IQ. Indeed, on average, Americans flunked the test with only a 40 percent score — a solid “F” by most U.S. educational grading standards.   This contrasts sharply with the 60% of survey respondents who said they felt “very confident” when making insurance decisions overall.

Delaware Insurance Commissioner Karen Weldin Stewart, CIR-ML said “In today’s economy, it is crucial that consumers understand their insurance coverage.”  The Commissioner continued, “With rising joblessness and falling home prices, Americans need to make sure they understand what their insurance policies cover. By making careful, informed decisions about their insurance, consumers can save money and ensure long-term protection for themselves and their loved ones.” 

Commissioner Stewart concluded "Now, more than ever, consumers need to be mindful of the impact their insurance decisions can have on their financial future. By arming themselves with the facts - and improving their Insurance IQ - consumers can make sure they are adequately protected, without paying more than they should for that coverage. Please go to www.delawareinsurance.gov/IIQ/IIQ.shtml to test your insurance IQ."

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Contacts:
Elliott Jacobson (302) 674-7303; (202) 294-3266 cell
Michael Gould (302) 674-7305