Overhaulin'

how can car insurance companies argue you can save hundreds over their competitors?

It seems besides cell phones, car insurance is advertising the most these days. Every insurance is arguing you can save hundreds over their competitors. I feel that if you use the same premiums and standards in all policies, the costs will be close, so how are insurance companies getting away with saying their hundreds cheaper then others?

Public Comments

1. They do not use the same premiums. The costs are not close. In some states, the prices for insurance policies from companies that advertise on television and do not use local agents (Geico, Progressive, etc.) are hundreds less than the prices from companies that use local agents and do not advertise on television. They can get away with saying it because it's true.
2. Sometimes it is true and sometimes not. Advertising is regulated by the Department of Insurance in your state.
3. They can argue that because they use the word "could". Listen carefully, there is no promise or representation that you will save hundreds.
4. All insurance companies advertise their products very smartly and you feel that this insurance company is providing cheap car insurance . But they will use at end terms and condition apply or there is some condition. This is gimmick. Some time on paper, charges will be less but they will add extra charges for different different factors. I will suggest you just compare the prices of these insurance companies online and decide which is cheaper in place of just watching ad and they claim save thousand of dollar.
5. There's a lot of hype out there so don't always believe what you see & hear. There is no "set" price for coverage since there are many variables in underwriting coverage. Pricing may also vary due to the level of service a carrier provides. And of course, I wouldn't put it past some carriers to do a sophisticated bait & switch - or at least a lot of fine print. For example, in Allstate ads they mention a "value plan" which is supposed to be dirt cheap. In the fine print, it seems you have to have your premiums automatically debited from your account to qualify and have a new policy - existing policies don't qualify. Same thing for the "accident forgiveness" coverage & the plan where you get a rebate 2x year if you have no accidents - you later learn these apply only to new policies, which are priced higher than the ones in the "value plan". (Ironically, an Allstate ad is playing in the background as I'm typing this!)