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Car Insurance Quote Sheet: Experimental Evidence of Its Impact on Financial Consumer Decisions

General Information

Project description

SERNAC designed and tested Key Fact Sheets to help consumer decision-making on quoting car insurance.

The study evaluated options to standardize the car insurance quotation sheet's design through a randomized online experiment with 3,008 consumers. Three prototypes were designed and tested in contrast to a representative quotation sheet currently provided by insurance companies in Chile to achieve this objective. Each prototype considered simplifying the language and standardization of the information, visual elements that help consumers understand the content easily, and providing comparative market data of the company's service.

We found that one of the formats led to a 4.13 percentage point increase in the intention to quote other car insurance options. The results also showed that SERNAC's designs significantly increase the understanding of the insurance coverage by 36 percentage points on average. They also improve the levels of knowledge of complex concepts (premium and deductible), the perception of the usefulness of the information and ease of understanding it. Likewise, the results showed an increase of 15 percentage points in confidence in the information provided.

Detailed information

Final report: Is there a final report presenting the results and conclusions of this project?

Yes

Final report

Data Exclusion

People who do not meet the legal considerations for driving are those under 18 years of age or who have not graduated from primary education. Also, we excluded people older than 75 years due to the low participation in the renewal of driver's licenses.

Additional information

<h3>Does a third party implement the intervention or is this a collaboration with another team?</h3><div class="csp"><p>We received advice from the Behavioral Insights Team during the design of the interventions.</p> </div><h3>Collaboration with other institutions</h3><div class="csp"></div>

Who is behind the project?

Institution: Servicio Nacional del Consumidor (SERNAC)
Team: Servicio Nacional del Consumidor (SERNAC)

Project status:

Completed

Methods

Methodology: Experiment, Online Experiment
Could you self-grade the strength of the evidence generated by this study?: 10

What is the project about?

Policy area(s): Economy, Consumer policy, Finance
Topic(s): Consumption- Purchase behaviour

Date published:

3 January 2022

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