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Insurance Business | 23 Jun 2015, 09:30 AM Agree 0
As ad spending soars, critics are saying auto carriers could offer significantly lower premiums if they cut their air time.
  • Jim | 23 Jun 2015, 10:05 AM Agree 0
    This is the United States. We have a system in place called capitalism. If an insurer is spending "too much" on ads they will pay the economic price of financial failure. The marketplace is highly competitive. Progressive and GEICO have a business model that works for them, that would not work for carriers like Travelers, who isn't on the big spender list. Mr. Hunter needs to admit that he's made a living seeing faults where they really don't exist. Not too long ago he stated that personal insurance is too expensive because there are many people who can't afford it. Amazing leaps of logic needed to get where he likes to live. Are Progressive and GEICO great companies? Yes . . . and no. Should they be hauled to the woodshed for their advertising expenditures? Only if you're a customer and the way you punish them is by buying from someone else, because their premiums are too high as compared to other companies' premiums for comparable coverage.
  • Dan Fagan | 23 Jun 2015, 10:56 AM Agree 0
    You would think that would make those companies who do not overspend on advertising that much more competitive. I guess you would need to see % of budget as opposed to amount spent.
  • Jeff Alford | 23 Jun 2015, 11:55 AM Agree 0
    Maybe Mr. Hunter could add this to a branch of FEMA, they do such a good job with rates and claims. Maybe the Automobile manufactures could sell cars cheaper if they did not advertise.
  • fred northup | 23 Jun 2015, 01:21 PM Agree 0
    I have been marketing my businesses for over 35 years. If advertising is done effectively it should not cost the company anything extra as every dollar spent could bring in many times more in revenue. There many other products that spend as much or more on marketing (like the auto industry or pharmaceuticals ). than insurance companies and no one complains that their new car is 100% more that it was 10 years ago. BUT In most cases the insurance for this example has not come near increasing by 100% over 10 years. Insurance cost is made up of 3 main costs : replacing or repairing the car, medical injury and legal costs. Insurance companies have no control over these costs which are the majority of your insurance bill. These are my observations only.
  • Justin | 30 Sep 2015, 10:18 AM Agree 0
    You can't really be a capitalist when you rely on government to force people to buy your product or service.
  • Andre | 30 Sep 2015, 12:19 PM Agree 0
    Everybody has an opinion about the recipe for success and/or failure of someone else's business; all while their own business has issues that need attention. There's nothing wrong with assessing the actions or activities of other businesses. That information has the potential to assist in your business success. On the other hand, to be too critical of the business practices of other companies could be perceived as sour grapes. Whether it is from competitors or any other firms. Business takes care of business. If advertising is a blank check, it's a scary thought that any amount can be inserted. Perhaps that amount effects the company's bottom line. Question? Is anyone overseeing the writing of this check? More importantly, will the customer be sacrificed in the name of advertising. It will all be played out by and through the customer. The auto insurance customer is pretty savvy. Because we are having discussions about it now is an indication that adjustments, perhaps cost reductions are nearby.
  • Joan Olander | 20 Jun 2016, 04:38 PM Agree 0
    Anti-consumer is about the nicest thing I can say. I just had a very great 8 year old Prius declared totaled as a result of a Geico customer's negligence. If it had been new, it would have been repaired but since it is older (though well-maintained, trouble-free and paid for!) it was declared totaled. This is irresponsible and cruel. I'm an older person who would really like to retire -- not start making car payments for a vehicle I don't want or like. Geico won't even provide me with an adequate rental vehicle. They could repair my vehicle with oem parts for a very tiny fraction of that 1.8B.
  • | 19 Nov 2016, 10:00 PM Agree 0
    less advertising and lower premiums please.
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