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Deborah D. Heisley
Ph.D., Professor of Marketing and Marketing Department Chair, David Nazarian College of Business and Economics, California State University, Northridge
Can drivers actually save as much as insurance companies advertise when switching companies?
Perhaps. There is truth in advertising regulations that would require a company to deliver what it promises. However, the savings may be based on a base model that many consumers might find inadequate and certain customer characteristics that not every consumer might not meet.
Why do car insurance companies spend so much on commercials?
Insurance addresses financial and emotional risk. Insurance companies spend a lot so that they have high brand recognition. High brand recognition helps consumers believe in the legitimacy and stability of the company. Also, consumers will sometimes use the share-of-voice that the company has in the marketplace as an indicator of quality and stability.
Should drivers trust their insurance company?
Consumers should do their research before selecting their insurance company and agent. They should compare rankings and evaluations from reliable sources. Correct coverage by a solid, well-ranked company should provide sufficient protection from significant financial risk.
Read the full article, here.