73% of Insured Drivers Prefer to Pay Out-Of-Pocket Rather Than Filing Insurance Claim
CHARLOTTE, N.C., Aug. 20, 2024 /PRNewswire/ -- While auto insurance is meant to be a financial safeguard for drivers, many are opting not to use it. In its latest analysis, LendingTree®, one of the nation's leading online marketplaces for loans, credit cards and insurance, found that 39% of insured drivers who've been in an auto accident or incident have bypassed their insurance for repairs. Additionally, 24% have filed a claim and later regretted doing so.
LendingTree conducted an online survey of 2,000 U.S. consumers ages 18 to 78 to get a clear picture of how drivers handle accidents and insurance.
Key Findings
- Many prefer to pay out of pocket for auto damage. Among insured drivers in an accident or incident, 39% have bypassed their auto insurance for repairs. When asked why, 59% said the damage was minimal, 44% said their deductible was higher than the cost and 42% didn't want their insurance to increase.
- Some keep these incidents to themselves. 57% of those who've paid out of pocket didn't disclose the incident to their insurer. A high deductible doesn't appear to be a barrier for many drivers since 76% had a deductible of less than $1,000 when they paid out of pocket, and 65% spent less than $1,000 on repairs.
- Filing claims has led to regret for some drivers. Almost a quarter (24%) of insured drivers in an accident or incident have filed a claim and later regretted doing so. The top reasons for post-claim regret are significantly higher insurance rates (59%), a decreased vehicle value (36%) and an expensive deductible (33%). Among drivers who've filed a claim in the past five years, 26% said their annual insurance rate increased by at least 25%.
- Overall, most drivers want to avoid insurance. Almost three-quarters (73%) of insured drivers in an incident would generally prefer to pay out of pocket for a small issue rather than go through insurance, and 49% have paid for repairs their insurance would have covered.
To review the full report, visit: https://www.lendingtree.com/insurance/insurance-repairs-survey/
Methodology
LendingTree commissioned QuestionPro to conduct an online survey of 2,000 U.S. consumers ages 18 to 78 from June 13 to 14, 2024. The survey was administered using a nonprobability-based sample, and quotas were used to ensure the sample base represented the overall population. Researchers reviewed all responses for quality control.
We defined generations as the following ages in 2024:
- Generation Z: 18 to 27
- Millennial: 28 to 43
- Generation X: 44 to 59
- Baby boomer: 60 to 78
About LendingTree
LendingTree® is one of the nation's largest, most experienced online financial platforms, created to give consumers the power to win financially. LendingTree provides customers with access to the best offers on loans, credit cards, insurance and more through its network of approximately 400 financial partners. Since its founding, LendingTree has helped millions of customers obtain financing, save money, and improve their financial and credit health in their personal journeys. With a portfolio of innovative products and tools and personalized financial recommendations, LendingTree helps customers achieve everyday financial wins. LendingTree, Inc. is headquartered in Charlotte, NC. For more information, please visit www.lendingtree.com.
MEDIA CONTACT:
Jericka Lambourne
[email protected]
704-943-8208
SOURCE LendingTree, LLC
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