While not every state has the same requirements, each does mandate that drivers carry some form of auto insurance. Although it is ubiquitous, research from Forbes Advisor indicates insureds are confused by their policies as around 40% believe they have coverage that doesn't exist in auto policies.

For example, 47% of drivers think coverage for additional living expenses is included in an auto policy, while 49% believe their policy has "extended crash coverage," which isn't a coverage type. Around 40% think they have "vehicle emissions" insurance.

Younger drivers, ages 18-25, are more likely to be misguided on what their auto policy covers. More than 65% believe they have vehicle emissions, while 69% said their policy covers additional living expenses. Further, nearly three-quarters said they have accidental death and dismemberment insurance in their auto insurance policy. Nearly all (91%) of young drivers surveyed also said insurance would pay out if their car wouldn't start.

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Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]