Who Offers the Best Price on Car Insurance?
With an abundance of television advertisements nonstop from some of the top players in the insurance industry one could conclude that he who advertises the most has the best rates on car insurance. Evidently many consumers agree with that notion as well. In 2008 GEICO not only grew policies in force by 8.2% but at the same time dethroned Progressive Insurance as the number three writer of private passenger automobile insurance in the United States.
What drives these impressive sales numbers? Advertising, advertising, and more advertising.
In the year 2007 GEICO spent $751 million in advertising. Exact figures are not available for 2008 but a record $1 billion or more was estimated to have been spent to encourage insurance buyers to pick up the phone and call for a car insurance quote.
But here is the Billon-dollar question: Does GEICO have the best car insurance rates? If you buy an insurance policy direct with GEICO thereby cutting out the so-called middleman (the insurance agent) does that guarantee a better price?
In a word no, GEICO sets their insurance rates in the exact same way that other insurance companies set rates. GEICO spends a considerably larger amount of money on advertising than any of its competitors and a interesting fact insurance buyers may not realize is the money invested by GEICO in advertising for new customers, is reflected in the true cost of the car insurance policy you own with GEICO.
In other words if GEICO decided to spend no money next year on advertising in theory they could lower the rates for their customers by $1 billion!
That might save GEICO customers 15% or more on their GEICO car insurance policy!
The Agent Gurus Network recommends local insurance agents as a better option for consumers when they purchase insurance. Click here to receive your free quote and find out why professional advice and not just a price™ is a better option for consumers.Tags: Who Offers the Best Price on Car Insurance?