It looks like it’s good to be the Gecko. GEICO has now officially become the 2nd largest auto insurer in the United States through an aggressive advertising and pricing model. The often repeated “15 minutes could save you 15% or More on Car Insurance” is unmistakable and encourages the commoditized nature of the personal lines insurance industry. The point is, insurance is the same no matter who you get it from so you should be able to get it as cheaply as possible. You see it with every carrier as they all fight for the same group of drivers with little else to differentiate themselves. What GEICO does better and has driven this growth is their constant advertising with same message using fun characters that can make the advertising campaign viral. In a time when other carriers are just now realizing they need a strong online presence, GEICO is meeting consumers where they want to be. They want an easy process that doesn’t take a lot of time and they can understand. It also helps that GEICO’s online system is modern and makes the quoting process simple and getting coverage easy. Since I spend most of my time using other carrier websites, I know how nice it is to work with a website that is easy to use.
Now that we’ve looked where the growth is coming from, we can take a look at some of the drawbacks that consumers don’t realize when using GEICO. If you don’t know what each coverage means, how it will affect you, and what you may need, then using the settings on GEICO’s website may leave you with a policy that doesn’t do what you think it does. Low limits are typically suggested, especially in areas that are not costly to increase coverage such as Property Damage, but if you’re the kind person down the street who shops twice a year, you probably won’t know this. In Arizona, damage to windshields from rocks is commonplace and really can’t be avoided, but you wouldn’t know this from the default of no glass coverage with GEICO’s rating system. What policyholders are going to find when they miss the checkbox to add it is that when the windshield needs replacing, the GEICO representative will explain, “Yes you do have glass coverage with a $___ deductible,” as long as there is comprehensive coverage on the policy. There also seems to be an overall discouragement from having high liability limits with tabs that show a cheaper rate for lower liability coverage and wasn’t the point of going to the website to get a cheaper rate. Why not go as cheap as you can go?
As a Scottsdale independent insurance agent, I’m obviously biased that working with my company is the best way to go but the reasons may surprise you.
- Want to get a quote online? No problem. When you submit your information, we can quote 15 companies for you to see who has the best coverage along with a great rate.
- Need help understanding the coverage that’s best for you? That’s what we’re here for – phone call, e-mail, text – we’ll explain what you need to know.
- Don’t want to spend a lot of time? That’s why we do the work for you.
- Want to talk in person? We can meet you in our local Scottsdale office or at a place that works best for you
- Need more than just car insurance? We take care of all your auto insurance needs so you only have to call one person.
Go ahead and give us a shot, you’ll be glad you did.
