By December 12, 2011 Read More →

Insurers Are Struggling to Make Fine Print More Understandable

One of the most common complaints of people who hire insurance is the inability to fully understand the language used in the policy, and that sometimes can be very technical, especially in the small print of car insurance and the life insurance , which is necessary a glossary of terms. Therefore, insurance companies are making a real effort to offer contracts with a language more accessible to all potential policyholders.

In Andalusia, for example, according to a study by DKV Seguros, 42% of insurance policyholders fail to fully understand the fine print of the contract signed. Another 30% complain that this language is too technical, which is a great difficulty for the person, and causes confusion and bewilderment.

Fully understanding all the concepts in insurance is essential to the policy itself. For this reason, insurance companies recommend asking any questions before affixing the signature.

Also, reading through the contract is also required. 19% of the Andalusians, for example, says that they do not read the terms of contracts, while 49% say they only read “above” paragraphs.

Interestingly, older people have greater understanding of all aspects that are included in the policy. The group included in the age group between 20 and 40 years is one that is has been having more trouble understanding the fine print of contracts. Women are said to have been completely reading all sections of the contract, but it is men who have less difficulties to understand it completely.

Posted in: Auto Insurance

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