Country drivers are more honest than city drivers when it comes to car insurance, according to a survey by the Insurance Council of Australia.

THE AUSTRALIAN BUREAU of Statistics recently released its Motor Vehicle Census 2014 which showed there are now 17.6 million vehicles registered in Australia (2.6% more than 2013) and that the average age of vehicles on Aussie roads is 10 years.

But, a survey released by Understand Insurance (an initiative of the Insurance Council of Australia) has revealed that while 76% of Australian are totally reliant on their car for travel, with 65% using it every day, around one in three drivers renew their insurance without checking to see that it meet their needs.

“Our research found just over one in three (37%) drivers consult their policy document as a source of information about what their policy covers, which is concerning when you consider how many drivers are also unclear about what they are covered for,” Understand Insurance spokesman Campbell Fuller said. The figures revealed that 38% of young drivers (18-24) don’t look at their policy document to see what it covers.

“For instance, around one in five of those with third-party only insurance wrongly believe they are covered against damage caused by an uninsured driver (21%) or accidents which are their fault (20%).

According to Understand Insurance, country drivers are more reliant on their cars than city dwellers (81:74%) and that only 41% of country drivers compare policies before choosing one, and that 21% of them rely on their general knowledge to understand their policy while on 15% of city drivers will do that.

According to the results of the survey, country drivers might be less likely to shop around, but it seems that city drivers are less upfront with their insurer than country drivers. Sixteen per cent have misrepresented details such as where the vehicle is kept overnight compared with just 4% of country drivers, and 8% have misrepresented details such as speeding infringements compared with 4% of country drivers.

“By not reading your policy document and, as a result, not understanding what’s covered by your insurance or having inadequate cover, you’re exposing yourself to financial loss that could amount to tens of thousands of dollars – not to mention the risk to your livelihood if you rely on your vehicle to get to work.”