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How Wisely Do Consumers Select Their Property and Liability Insurance Coverages?
Author(s) -
ELDRED GARY W.
Publication year - 1980
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/j.1745-6606.1980.tb00671.x
Subject(s) - liability , actuarial science , business , selection (genetic algorithm) , property (philosophy) , marketing , advertising , finance , computer science , philosophy , epistemology , artificial intelligence
Responses from a consumer panel in South Carolina were used to evaluate consumers' selections of homeowner's and auto insurance coverages. The results indicate that many consumers violate accepted decision rules for selecting coverages. Liability limits typically were below usually recommended levels, while most respondents had selected only small deductibles. Responses also indicated that a major portion of the respondents had not been provided information by their agents to assist them in the selection of coverage. Respondents who reported they had received information from their agents typically had made more appropriate selections than those who had not.