Video Blog: 8 Common Auto Insurance TV Advertising Pitches and What They Don't Tell You

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Transcription:

Hello! I’m Dan Lyles with Lyles Insurance. And in this video, we’re going to go over 8 common auto insurance tv advertising pitches, and more importantly, I’ll go over the details that the commercials don’t tell you. It’s not that these sales pitches are false. It’s just that they don’t tell you the whole story.

1. “Cut rate auto insurance won't cover this”.

You see plenty of these commercials where vehicles get damaged in these crazy freak accidents. The spokesperson loves to mention how cut-rate auto insurance wouldn't cover your vehicle for such a freak accident.

But here’s what they don’t tell you:
 
What he's referring to regarding cut-rate auto insurance simply refers to the level of coverage you have selected. In particular, Comprehensive and Collision coverage. However, these commercials seem to imply that “cut-rate auto insurance” has more to do with the quality of an auto insurance company. But the fact is, it has to do with the coverage you select, not the company. Comprehensive and Collision coverages are both optional. No matter which auto insurance company you decide to go with, you make the decision of whether or not to add those coverages on your vehicle. So it's not a situation of where one company can offer you better coverage than anyone else can as the commercial implies.

2. “15 minutes could save you 15% on your auto insurance”.

It is recommended that you should shop around for better auto insurance rates at least once every two years. But very few drivers do so. So as the pitch says, “15 minutes could save you up to 15% on your auto insurance”, it is very possible that this is true.
 
But here’s what they don't tell you:
 
The same would be true with any auto insurance company you shop around with. Not just the company pitching the commercial. So why just shop one around one company at a time? It’s not time efficient.

3. Get an “Anonymous” auto insurance quote.

I can see where this ad is very attractive to people. Because people are sometimes really hesitant about giving personal information online.
 
But here’s what they don’t tell you:
 
“Anonymous” quotes are almost NEVER accurate! 92% of auto insurance companies use credit at least to some degree as a rating factor. And so if they don’t know who you are, there is no way they can accurately gage your credit score. And therefore your quote’s going to be off. If you’re not giving your real information, then you’re not going to get an accurate quote. And you’re wasting your time.
 

4. Accident forgiveness.
 
Accident forgiveness is actually a good thing to have on your policy.

But here’s what they don't tell you:

There are plenty of auto insurance companies who will offer accident forgiveness, not just the companies you're seeing the TV ads for.
And also, your driving record has to be completely clean besides the accident. After that, if you get even one minor violation, they will nail you on it! And you’ll find out they’re not as forgiving as they claim to be.

5. Disappearing deductibles.

Deductibles are your out-of-pocket expense for those of you who carry Comprehensive and Collision coverage on your policy. And some companies will offer “Disappearing Deductibles”, in which you pay a little extra each month, and your deductible will decrease by a certain percentage each time you complete a policy period without filing a claim. Until eventually, you get down to a zero deductible.

But here’s what they don't tell you:

If you do the math, you’re probably better off selecting a lower deductible to begin with. Now there may be an exception if you have a high deductible, such as a thousand dollars or more. But in most cases, disappearing deductibles really isn’t worth the extra premium.

6. Discount double-check

It's always a good idea to occasionally review your policy to see if you qualify for any more discounts that you're not currently getting.

But here’s what they don’t tell you:

You can do this with just about any auto insurance company. I don’t know any auto insurance company that you couldn’t do that with. So really, discount double-check is more of a marketing buzzword than anything else.



7. New car replacement coverage.

This refers to brand-new vehicles or nearly brand-new vehicles. If you select new car replacement coverage, you will be paid more than simply the market value if you happen to total your new car. This is great coverage to have for a new vehicle. In fact, it prevents you from going underwater on a car loan should you total a new vehicle.


But here’s what they don’t tell you:

Most auto insurance companies have this coverage offered anyways for newer cars. Some may call it gap insurance, other companies call it total loss replacement coverage. But they all mean about the same thing.

8. “Save up to $789 per year on your auto insurance by switching to ______ “.

It’s possible to save that much in some rare cases (and sometimes even more).

But here’s what they don’t tell you:

Much like I just picked that 789 figure at random, many auto insurance companies are simply pulling those figures out of their ass! They know very well that only a very small percentage of drivers will ever come close to seeing that much savings. They use those padded savings numbers just to reel you in, hoping they can beat your current rate by $10-20 a month or so.
Also, the ad calls for you to shop one auto insurance company at a time. That is a very time consuming and inefficient way for you to shop for auto insurance. You’re much more likely finding your best rate through an independent agent who can quote you with multiple companies at once.

Summary:

So there you have it! You probably noticed a common theme with many of these sales pitches, in that the auto insurance companies seem to imply that their company is the only one who offers such a benefit or a discount or whatever. And a lot of those same companies, they like to use star athletes, actors, cute little animals. Just understand that it's all a game of marketing. That's all it is.
I hope you learned something from this.
Thanks, and have a great day!

​ Link from video: Auto Insurance Page



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