Do Advertisements Affect Car Insurance Buying Decisions?

Everyone knows that advertisements are self-promotions. They would have varying degrees of influence on people. Some may resist and others may believe every word of it. And quite a few may have no idea that they are being influenced while forming a positive opinion about the advertiser. In short, they work to varying degrees and that is why companies spend a lot of money on preparing and deploying commercials.

What the Surveys and Studies Say

According to surveys, TV punch lines appear to be sticking in people’s mind and affecting buying decisions. They help in increasing brand awareness and of course sell policies. Insurance is a business of trust. Seeing a name before somehow enforces the thinking that they have been around a while to trust.

Vehicle insurance companies who keep regular advertising campaigns confirm as well that their business is significantly affected as a result of them. For example, GEICO management is very happy 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. Seeing it on TV enforces brand and changes how people see it.

Punch lines like “you can save 15%” and “we can beat your renewal quote” are straightforward (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 it. These companies do their homework well according to a recent survey that shows what matters to buyers.

It confirms that price (72%) and name recognition (32%) are two main factors affecting automobile insurance buying decisions. That is why they extensively work on these two points very effectively. It is interesting to see that personal recommendation (6%) is not really sought after.

Big Marketing Budgets Help

It seems to be a big battle going on TV channels. It is hard not to see a vehicle insurance commercial in an hour. Figures show that yearly one and half billion dollars are spent on them. 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 big guns especially on prime time television. This suggests that the rest are driven out of the market due to costs. A national campaign must sell so many policies to pay itself back and be viable. They cannot make it work without nationwide availability. That is why local vehicle insurers either look for regional exposure or other promotional methods.

“You Can Save Money” Is the Key Message

In a way they are helping motorists as well by spreading a message that you should shop around if you want the best priced car insurance guaranteed for another renewal. Over 60% of American motorists renew policies without getting alternative quotes according to this survey. Another study suggests that you can save around 20% by switching, especially if you haven’t changed your carrier for 7 – 8 years.

People choose a particular auto insurance company for all sorts of reasons. Hearing or seeing a brand a few times can make you trust it unconsciously. That is why they constantly fight over prime time slots to make sure it is their name you see. It may be the punch line or funny anecdote that stays in 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 auto insurance comparison websites to see other offers and get quotes from different sources too. Get as many as you can to make an informed decision. If you come across one you have never heard before it is not hard to check if it is any good. When you spare a little time and don’t rush into making quick decisions you can find the best deals.