General Question

john65pennington's avatar

If the auto insurance companies quit advertising, would this really save the driver money?

Asked by john65pennington (29235points) July 25th, 2010

If its not Geico, its Allstate. if its not State Farm, its Progressive. these auto insurance companies spend a fortune on television advertising, in order to compete with each other. lets face it, even if you paid less for auto insurance annually, you know they are going to cut your benefits or raise your deductible to make up the difference. i can only assume these insurance companies think the general population is a bunch of dumb bunnies and cannot figure out their scheme. i have had Nationwide Auto Insurance for many years. i pay a little more for the coverage i require and i am totally happy. you save money on your auto insurance by being a safe driver and avoiding traffic citations. do you really believe that swapping auto insurance frequently, is a good move? would less advertising save you and i money on our auto insurance premiums?

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5 Answers

Austinlad's avatar

I sincerely doubt it. Why would these companies have any interest in passing on that savings to customers? I also doubt they will ever stop advertising, given the intense competition.

RealEyesRealizeRealLies's avatar

Apparently this is not the case for every state, but here in Missouri I just saw my very first AAA Car insurance commercial ever. Haven’t seen it since and it’s been a month.

I was a thirty year customer with AllState. Never a claim. Never a missed payment. I asked if they could find a way to lower my rate. They said no.

I checked rates for everyone and they came up about the same. Not worth switching and starting a new relationship with a new agent. Then a friend told me about his experience with AAA.

I checked with them and they lowered my rate to less than half of what I paid with AllState. Less than half with a better policy.

I called AllState to review and they still couldn’t lower my rate by one little penny. I cancelled and they hassled me for a week, refusing to cancel unless I proved to them that I had surrendered my keys and no longer owned the car. I said WHA????

Threatening to call the Attorney General got them to see things more clearly. I’ve been very pleased with AAA so far, and even get a great travel magazine every month with the policy.

IcelandicCarly's avatar

My suggestion would be to find an independent insurance agent in your area that can shop your insurance with many different companies at one time. It is almost always best to stay with one company for longer periods of time. Most companies offer better rates the longer you have been with them. Many factors go into the rates, and each company puts weight on the factors differently. Driving history, age of drivers, education, credit and even your job can play into your rate. So the best company for your neighbor may not be the best company for you. Like every other product out there advertising expense will be absorbed in the price of the item sold; in this case the policy.

hiphiphopflipflapflop's avatar

There’s a reason why Warren Buffet invested heavily in insurance. It’s like the opposite of betting against the house in gambling. If your statistics are good, it’s a money flow machine.

CMaz's avatar

Insurance companies are not about saving you money.
They are about making money. Marketing does that.
Hopefully YOUR money gives you piece of mind.

Anything else is a gimmick.

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