Author: Bob Walton |
According to a new in-depth study of U.S. auto insurance premiums by Consumer Reports, slick auto insurance advertising “creates the impression of price competition when there actually isn’t any.” So says Doug Heller, an insurance consultant and advocate, in the September 2015 Consumer Reports magazine article titled, The Truth About Car Insurance.
As a case in point, Progressive Insurance auto premiums were the 2nd most expensive among five top U.S. insurers; more than $597 higher than the lowest. Their premium saving advertising only created the illusion of substantial savings where there was none.
Progressive Insurance is hardly alone in its promise to save the buyer hundreds of dollars on car insurance. At last count, there were over twenty U.S. insurance companies using various advertising gimmicks to lure the price buyer to their website, including the omniscient Geico gecko, the miniature globe-wandering lizard with the strong Australian accent.
Price-only buyer beware.