A recent 2024 survey from the National Association of Insurance Commissioners (NAIC) sheds light on the current state of insurance knowledge among Gen Z adults. While 35% of Gen Z individuals pay for cellphone protection plans, only 21% have renters insurance. This lack of coverage may stem from a deeper misunderstanding of the risks they face and why having the right insurance matters. The survey highlights an important issue: many young adults feel overwhelmed or anxious when it comes to dealing with insurance.

Over half of respondents (54%) admitted that the thought of handling insurance makes them feel uneasy. A significant portion of Gen Z, about one-third (34%), said they plan to wait as long as possible to get life insurance, with 28% expressing the same sentiment about health insurance. Additionally, only around 1 in 4 Gen Zers could correctly define common insurance terms like “deductible” (27%) or “copay” (29%), and 22% of them had little to no understanding of the importance of auto insurance. This reveals a concerning gap in insurance knowledge, which can lead to missed opportunities for protection and financial security.

However, there is some positive news. The survey found that 61% of Gen Z adults already pay for their own health insurance, and 49% carry automobile coverage. These figures show that while there’s work to be done, there is also a solid base to build on as we aim to close these gaps in understanding and coverage.

The NAIC also pointed out that a lack of insurance knowledge is not exclusive to Gen Z. A study by Trusted Choice revealed that even consumers who consider themselves knowledgeable about insurance often misunderstand key aspects of their coverage. For instance, over half of respondents didn’t realize that a standard homeowners policy doesn’t cover flood damage, and 70% didn’t know that it wouldn’t cover materials for home renovations. In the case of auto insurance, many people mistakenly think their personal auto policy will cover personal items stolen from their car, when in fact, homeowners or renters insurance typically covers this.

How Can You Build Better Insurance Knowledge?

If you’re feeling confused about insurance, you’re not alone. The good news is you don’t have to figure it out on your own. Independent insurance agents are here to help clarify the different policies available, explain what they cover, and ensure you’re making the best choices for your needs. Gen Z, like many others, can benefit from reaching out to a trusted insurance professional to better understand their coverage options and make informed decisions.

At Murphy Insurance Agency, we specialize in simplifying insurance for individuals of all ages. Whether you’re just starting to consider your options or are looking to update your existing coverage, we’re here to answer your questions and guide you through the process. Don’t let confusion hold you back—contact us today to learn more about how you can protect your future with the right insurance coverage.

Sources: National Association of Insurance Commissioners & Trusted Choice

Read Other Blog Posts

Car in traffic

Risks of Lowering Auto Coverage

Many drivers look to reduce their auto insurance premiums by lowering coverage or dropping parts of their policy altogether. While it’s true that cutting back can save a few dollars in the short term, the long-term consequences of being underinsured can be financially devastating—especially in the aftermath of a serious accident. Learn about ways you can save without exposing yourself to major financial risk.
Students

The Good Student Discount

Teens and young adults often face hefty auto insurance premiums because, statistically, new drivers are more likely to get into car accidents. However, most carriers offer a way to help offset some of this financial burden—a good student discount. Learn more about how to qualify.
Senior driver

Driving Safely As You Grow Older

As you get older and wiser, you might come to the realization that you just can’t do some things quite like you used to. When it comes to driving, it's important to stay safe and feel confident behind the wheel. Learn about smart driving tips for seniors and precautions to ensure your safety and that of those around you on the road.
MHM 1

Introducing the Murphy Insurance Homeowner’s Manual: Your Guide to Preventing Costly Home Repairs & Damages

Murphy Insurance Agency has launched a new Homeowner’s Manual designed to help you prevent costly home repairs and avoid common insurance claims. Backed by decades of real-world experience, this practical guide offers seasonal tips, safety advice, and a maintenance checklist to protect your home—and your wallet—all year long. Download your copy today!
Protecting Your Marlborough Home A Local Guide to Homeowners Insurance

Protecting Your Marlborough Home: A Local Guide to Homeowners Insurance

Thinking about homeowners' insurance in Marlborough, MA? Whether you're settling into your first home or reviewing your coverage, Murphy Insurance offers expert guidance and tailored protection designed for New England’s unique risks. Discover what’s included, what to expect, and how our local team can help you protect what matters most.
House with trees

10 Signs a Tree May Fall on Your Property

Trees can be valuable additions to any property; however, each year, fallen trees and branches cause millions of dollars in property damage. It is crucial to proactively recognize signs a tree may be at risk of falling to help prevent dangerous and costly accidents.
Renters Insurance in Medway, MA Protect Yourself Original

Renters Insurance in Medway, MA: Protect Yourself

Renting in Medway, MA offers convenience—but without renters insurance, your belongings may be at risk. While your landlord’s policy covers the building, it doesn’t protect your personal property or shield you from liability. Renters insurance provides affordable coverage for theft, fire, water damage, and personal liability. With options tailored to your needs, local agencies like Murphy Insurance make it easy to get covered.

Spring Clean Your Insurance: A Fresh Start for Your Policies

With Spring often comes spring cleaning. Have you ever thought about giving your insurance policies a little spring cleaning too? Just like your home, your insurance coverage needs attention and regular updates to ensure it’s still a good fit for your current needs.
What to Do When a Hurricane Threatens

Get Ready for Hurricane Season in New England: What You Need to Know

While New England is not typically directly in the hurricane "strike zone" like the Gulf Coast or the Southeast, that doesn’t mean we’re immune to the dangers of hurricanes and tropical storms. With that in mind, it's important to have a plan as hurricane season approaches and be sure you understand your insurance coverage.

Visit Our Personal Insurance Page

Personal Insurance

Life is an ever-changing journey, and it deserves a thoughtful, comprehensive plan to protect the things and people that matter most. Our dedicated team at Murphy Insurance is here to assist you in creating that plan. With a wide range of product options at our disposal, we ensure that your plan is tailored precisely to your requirements. Our commitment to providing clear, intelligent guidance to help you achieve true peace of mind. Learn more about our personal insurance portfolio.