Everyone knows that advertisements are self-promotions. However they would have varying degree of influence on people. Some people may resist to them and others may believe every word of it. And quite a few people may have no idea that they are being influenced to form a positive opinion about the advertiser.
According to surveys, TV punchlines appear to be sticking in people’s mind and affecting their buying decision. They help insurers increase brand awareness and of course sell insurance policies. Insurance is a business of trust. Seeing a name before somehow enforces the thinking that they have been around a while to trust.
Car insurance companies who keep regular advertising campaigns confirm as well that their business is significantly affected by the advertisements. For example, GEICO management is very happy with their ads and confirms that they are one of the top auto insurers today thanks to these ads. Serious increase in their market share in recent years confirms they are doing something right. Advertisements enforce brand and change how people see companies.
Punch lines like “you can save 15%” and “we can beat your renewal quote” are straight forward (and of course they come with terms and conditions statements that suggest you need to be eligible for these). If they keep drilling it long enough you will remember and give them a call when you need. These companies do their homework well according to a recent survey that shows what matters to buyers.
The survey confirms that price (72%) and name recognition (32%) are two main factors affecting auto insurance buying decisions. Current advertisements work on these two points very effectively. It is interesting to see that personal recommendation (6%) is not really sought after.
It seems to be a big battle going on TV channels. It is hard not to see an auto insurance advert in an hour of TV. Figures show that yearly one and half billion dollars are spent on vehicle insurance commercials. And this figure is increasing steadily.
It is easy to understand what is at stake when you look at the regular advertisers in national networks. Generally, you see top auto insurers especially on prime time TV. This suggests that the rest are driven out of the market due to costs. A national ad campaign must sell so many policies to pay itself back and be viable. If a company does not have nationwide availability to sell policies they cannot make it work.
In a way these companies are helping motorists as well by spreading a message that you should shop around if you want the cheapest car insurance guaranteed for another renewal. Over 60% of American motorists renew their policies without getting alternative quotes according to this survey. Another survey suggests that you can save around 20% by switching insurers especially if you were with the same company for 7 – 8 years.
People choose a particular auto insurance company for all sorts of reasons. Hearing or seeing a brand-name a few times can make you trust the company unconsciously. That is why a few large insurers constantly fight over prime time TV advertising spaces to make sure it is their name you see. It may be the punchline or funny advert that stays in your mind. There is no harm in giving them a try and see if they will offer you enough savings to switch.
You can also visit comparison websites to see other offers and get quotes from different providers too. Get as many quotes as you can to make an informed decision. If you come across a company you have never heard before it is not hard to check if it is a good car insurer. When you spare a little time and don’t rush into making quick decisions you can find the best deals.