Survey: Americans know less than they think about auto, house insurance

A new survey from the National Association of Insurance Commissioners suggests that many Americans know far less about auto and house insurance than they may think. In a statement, the group reported that it had asked 1,000 American adults ten questions about insurance. Some of the things they were asked included whether auto insurance automatically covers a rental car and whether it's possible to own a house without homeowner's insurance.

"Now, more than ever, consumers need to be mindful of the impact their insurance decisions can have on their financial future. By arming themselves with the facts - and improving their Insurance IQ - consumers can make sure they are adequately protected, without paying more than they should for that coverage," said NAIC CEO Terri Vaughan.

Along with not knowing much about house insurance, just 19 percent of respondents were aware that the requirement for private mortgage insurance depends on the lender and the size of one's down payment, while 30 percent believed that PMI is required by law. The group also noted that 14 percent of respondents were aware that life insurance companies typically recommend coverage that provides five to seven times your annual salary.