Survey Finds New Car Owners Knowledgeable About Transmissions, Air Bags and Cylinders, But "Out of Gas" When It Comes To Auto Insurance
Progressive Survey Reveals What Consumers Pay Attention to When Buying A New Car; Most and Least Expensive 2004 Vehicles to Insure Are Announced
MAYFIELD VILLAGE, Ohio — January 12, 2004 — Ask a new car owner whether his or her vehicle has front or rear wheel drive, how many cylinders are in the engine, or where the airbags are located and they'll tell you all about it. Ask them how much insurance coverage they have and you're likely to get a blank stare. With more than 10 million U.S. households planning on buying a new vehicle in 2004, knowledge about one's auto insurance should be more top of mind.
A recent national survey by the Progressive group of insurance companies (third largest auto insurance group in the country) found that new car owners know much more about the features of their vehicle than they do about the insurance that protects it, themselves and others. The survey found that a vast majority of drivers who had recently purchased a new vehicle knew its transmission type (98 percent) and number of cylinders (91 percent). Also, nearly all drivers who recently purchased a new vehicle said they knew how many airbags it had and where they were located (99 percent, respectively).
By contrast, more than half (51 percent) did not know the amount of bodily injury liability coverage they had for one person, and 62 percent didn't know their liability coverage limits per accident.
"Buyers put a lot of thought into the types of features they want in their new vehicle," said Tom Hollyer, product development manager, Progressive. "Yet our survey showed that many new car buyers don't pay as much attention to their car insurance." In fact, the Progressive survey revealed that almost one in three drivers (30 percent) didn't know how much they paid every six months to insure their newly purchased vehicle.
"Auto insurance can be confusing," said Hollyer. "Progressive and our agents share a simple goal - we want people to better understand auto insurance and make it easier for them to shop for and buy the product that best meets their needs."
New car buyers should know that the make and model they choose does affect insurance premium. That's because rates are determined not only by driver characteristics such as age and gender, but also by vehicle characteristics, which generally include the car's make, model and year, weight, horsepower, body type, wheel base, and vehicle type (passenger car, van, pickup, SUV, etc.). To illustrate how the cost of insurance can vary by vehicle, Progressive compiled its list of the most and least expensive 2004 vehicles to insure:
| Most Expensive 2004 Vehicles to Insure |
Least Expensive 2004 Vehicles to Insure |
- Dodge Viper
- Acura NSX
- Jaguar XKR
- Porsche 911
- BMW M5
|
- Oldsmobile Silhouette
- Pontiac Montana
- Saturn SL
- Chrysler PT Cruiser
- Saturn SC
|
For more information on auto insurance, comparing rates by vehicle and tips on what to ask when purchasing a new vehicle, visit www.progressive.com.
The Progressive group of insurance companies, in business since 1937, comprises the nation's third largest auto insurance group and provides drivers with competitive rates and 24/7, in-person service. The companies offer insurance by phone at 1-800-PROGRESSIVE, online at progressive.com and through more than 30,000 independent agencies in the U.S. Providing stakeholders the information they need to make more informed decisions is a key company strategy. In 1994, Progressive became the first auto insurance company to provide its rates alongside the rates of other companies so consumers could easily compare and decide. In 2001, Progressive became the first Fortune 500 Company to report operating results monthly and in August of 2003 the company began reporting earnings per share monthly. The Common Shares of the Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at NYSE: PGR. More information can be found at progressive.com.
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Tom Hollyer is available for interview. For assistance in setting up an interview, contact our Media Relations Department.
