Posts Tagged ‘cost of auto insurance’

Is The Cost of Auto Insurance Advertising Driving Up Your Premium?

Thursday, July 5th, 2012

What is it costing your auto insurance provider to advertise each year? SNL Financial set to find out. Geico Corp is the King of auto insurance advertising, data shows, with annual spending of close to $1 billion! This number is up 10 percent from spending in 2010, which shows that insurers are becoming increasingly more competitive for your dollars.

What Are Other Auto Insurers Spending?

State Farm Mutual Automobile Insurance Co. — the largest home and auto insurer in the U.S. — took second place in the advertising war. Geico spent 22 percent more than State Farm last year, but State Farm increased their ad spending by 29 percent — three times’ the rate of Geico’s ad spending increase. Allstate Corp was the third biggest spender at $745.3 million in 2011.

Do Auto Insurance Companies Have To Spend So Much?

Allstate Corp has felt the pain of cutting back during the recession. An internal presentation indicated they had been losing ground with consumer awareness due to reduced TV ad spending in the previous year. They also lost 30 percent of their typical call center volume due to reduced direct-mail solicitations. So, it’s no surprise they ramped up their efforts last year to keep pace with the big dogs.

Does Increased Auto Insurance Advertising Affect Premiums?

Insurance companies are in the business to make money, so you can be sure they are charging you more than enough to cover any accidents and fund their companies’ growth. Research indicates that there has not been a major churn in the industry, despite increased spending. Progressive and Geico are growing, but most insurers aren’t able to grab major market share. On the bright side, 25 percent of auto insurance customers shopped for a new policy last year — and 43 percent of them did end up switching providers. This is the highest switch rate since 2008.

auto insurance

Why not shop around for a deal on your auto insurance here & now?

Car Insurance Pricing and Inflation

Wednesday, June 9th, 2010

As the cost of living continues to soar for most UK families, the issue of car insurance inflation remains as topical as ever, particularly when car insurance equates to such a large percentage of average monthly outgoings. However, car insurance inflation has been rising steadily in recent times and the national average increase on premiums reached 6.9% on all comprehensive policies last year.

Amazingly, motorists choosing to fight inflation by using online brokers and price comparison websites actually managed to save up to a third on all average prices in the same period, proving that car insurance inflation can be easily tackled if drivers choose their policies by using the internet as their tool of choice.

A common mistake in the fight against car insurance inflation comes from renewing policies with the same company on an annual basis. Many insurers secure their business by offering an attractive discount when a policy is first purchased but premiums can rise steeply over the period of several years and consumers can be easily fooled into thinking they are still receiving the same discounts they earned during the first year with their insurance company.

The best tool for beating car insurance inflation is organization. Always be aware of when your policy is up for renewal as many companies will continue to take direct debit payments from customer accounts without informing them of changes in premium costs. As well as being highly unethical, the cost of car insurance inflation is cleverly hidden from the consumer and, If the premium is paid in one lump sum, the chances of retrieving payments actually becomes less likely.

A month before renewal, drivers are advised to check online broker and price comparison websites to match their forthcoming renewal price against deals from other insurers. This is the most common method of cutting the costs associated with car insurance inflation and has seen many UK motorists sitting pretty with better low-cost insurance deals.