SW17LS

However stupid you think people are, they're more stupid than that LOL

tex2670

Look around you--this is exactly how advertising and marketing work--and it WORKS.

Why does everything cost $X99? THIS is not different.

Sulu

When you see Flo, do you instantly think about Progressive Insurance? Similarly, when you see the gecko, do you know that it must be Geico? And when you see that duck, do you instantly think about Aflac?

Here in Ontario, we have a similar insurance company mascot. It is an actor in a suit and tie, and covered in a knight's armour. It is rather silly and the actor plays it with tongue-in-cheek (just as the actor who plays Flo does), but it is effective because Belairdirect is now instantly recognizable.


Source

That is the purpose of these marketing campaigns. By relating an otherwise anonymous brand with a silly -- but instantly recognizable -- mascot, the brand (and by extrapolation, the product it represents) become household names. And what is better known than a household name?

Jewcano

iTrader: (4)

Amen to that......

And see, that, I can understand for elastic products/services. Where you can live without it. That's why I still have a hard time grasping it in this arena. Wouldn't the most successful be the most plain? When you HAVE to have something, don't you want to spend as little as possible and get the most bang for your buck? Am I missing something here? Maybe I should make my own auto ins company and put minimal $$$ in marketing, and let word of mouth help it grow. "Did you hear how much we saved, yeah, _____ doesn't have a stupid mascot so instead of paying that actor or animation team, they pass those savings to us". And don't get me started on the .99 business. That needs to go away too.

Again, totally understand associating mascot with a company, I get that, but at the end of the day, they're not going to base whether or not they use that company based on the mascot. They'll get a rate, see it's too expensive and move on. Or am I missing something here?

mmarshall

Many years ago, I was won over to GEICO not by a green lizard, a Cave Man, stacks of dollar bills wth eyes on them, talking-camels, or any other of their endless ad-images (GEICO has probably gone through more of those mascots than any other firm), but by what they actually gave me, did for me, and charged me for it. The proof is in the pudding......and GEICO, for me at least, backed those images up. I constantly get offers from insurance companies in the mail, claiming to have the "lowest" price and the "best" service. So far, they are all nonsense......none of them, as of yet, at least for me, have undercut GEICO......though in my case, I am not military and cannot qualify for the also-excellent USAA policies.

SW17LS

The problem with Geico is that if you do have a claim, they will ditch you like a bad habit

tex2670

But--effective advertising is all about name recognition. You remember the Gecko because he's funny; so you remember the company.

Forget the Gecko, look at the underlying message: "15 minutes may save you up to 15% or more." This is the most meaningless slogan you could possibly imagine. It could save you money, but maybe not. You could save 15%; or maybe more, or maybe less; we really can't say. People have bought into this nonsense--so they need a way to get everyone to remember the name. Without it, all people hear is "Insurance blah blah blah boring blah blah blah."

And as far as saving money, if you are not someone that totally understands your current policy coverages, Geico or any other company could easily quote you less because you don't give them good information as to what your current policy covers. Then, when you have an accident, you say "I thought I was covered for that."

You are right--it's stupid. But they keep doing it because it's clearly extremely effective. Meaning they have done their research and they know their target audience.

mmarshall

Not if you are in the Forgiveness Program (I've been in it for years). Not only do they not drop you, but your rates do not go up for a chargeable-accident if you have not had a claim for five years. I'm one of a select group of people who has the Coverage-for-Life clause (in writing)....you are guaranteed a policy for the rest of your driving-life, as long as you want to stay with the company. That, though, from what I can tell, is not something that they routinely advertise on their web site...I got a special letter in the mail addressed to me, giving it to me at no extra charge.

Now...outside of the Forgiveness and Policy-for-Life programs, can you be dropped? Absolutely. As Steve points out, GEICO is not known for putting up with risky people or those who cost them a lot of money. And they don't let just anybody in....they can be picky about who they will accept and who they don't. For example, when I joined GEICO, in the early 1980s, I had some problems with Customer-Service, over the phone, based on a recent accident I had had under another insurance company (one of the few chargeable accidents I've had in my lifetime). The Customer-reps and I could not agree on what was considered an acceptable rate, under the circumstances. Then, I talked to a supervisor......still no agreement. So, unknown to me, they must have then sent my case upstairs. A few days later, at work, during the day, I got a phone call from one of the GEICO Vice-Presidents, personally offering me a policy, at the rate I had first wanted. I've been with them ever since....and quite happy.

SW17LS

Eh, I know multiple people who have been really treated poorly by Geico when they've had claims, even decades since becoming insured by them.

Johnhav430

What happened: accident my fault, rates gonna go up at renewal. but I got a solicitation and oddly rates almost same, and state accident. Switch, and now have agent, not call center. He removed collision from my 1998 Maxima (in 2010), stated my wife is primary driver of BMW, and rates went down slightly. I lost my collision, but in 20.5 yrs. on the road, never had a claim so in reality lost nothing. I think it was 37 mos. later, my new rate with full coverage was actually lower than in 2010. I have tried to switch several times again and no dice rates higher.

Unfortunately, and fortunately, the only accident I had was when I started my current job in 2010. Unfortunately it was my fault. Fortunately, it was a brand new BMW loaner, and not my then 3 y.o. BMW. Personally, I am one of those who believes that no body shop fixes a vehicle to factory standards. It isn't that they can't, it's not economically feasible. It would be like a doctor trying to treat you as he wished, when you have insurance. His health plan says see one patient every 8 min., hasn't got time for you. same with body shops, fix your car like you see on TV, that's losing money.

Anyway, my insurance stayed the same, because the insurance agent pulled some tricks.

I had the lizard co., and they were terrible to deal with. They never answered "yes," to my being covered in a rental car. They said "it depends." Nice gamesmanship. So I went with the attitude you "WILL" cover me, end of story. And they did.

What they were hoping for was that if I had the vehicle more than 30 days, it is not covered as it is not a temporary use auto. Seems that not everyone knows this and so regardless,even if BMW gives you a free loaner for 1 yr. or 2 yrs., etc., you have to have them rewrite the agreement every 30 days. Don't accept Enterprise's telling you, "it's ok, just come back when you can" lol (they are the last I think where you have to literally specify what states you are driving to or you are NOT covered--last business trip I said I was going to VA, so I expected to see PA DE MD DC VA in the box, but it was blank--called up and the kid said it's in there, you just don't see it on the paperwork, but I do hahahahahahahahahahahahaha)

Johnhav430

Just to really simplify how bad they are--for one, they are not cheap. But all I wanted when I had them, was a OE windshield (they fought me for 40 min. on the phone only to do it--if I have a deductible, what do I care how much the glass costs, my loss is the deductible), and on an accident with a BMW loaner, they acted as if it were questionable whether I am covered. Also, on a brand new car, they specified used parts. What concerned me was per the contract, BMW is allowed to sue me for the difference of their car not being restored with original parts (never happened). Terrible co. (since I have never had any other claims I can't say anyone else is better, but at least with an agent, he acts better)

I wonder, how many out there have stuck with a co. 10-20-30 yrs., never had an accident, so they don't know/don't care how bad an insurance co. really is? I have heard horror stories with USAA, yet look at their commercials...

patgilm

I considered switching all of my insurance a few years ago from State Farm to USAA and some of the rates for car, jewelry, umbrella, etc. were both higher and lower but at the end of the day, the total amount for all insurance added together was the same per year with the savings being less than $100 which isn't worth my time switching. I will say when I got my second GTR a couple years ago the rate was a lot higher than my first GTR that I had a year beforehand and when I talked with my agent there really wasn't a great explanation why other than it was computer generated based on a number of factors, blah blah blah. After the first year my annual rate for my GTR when down about $550 so I was pretty happy about that considering I feel my IS350 seems to keep going up a little each year.

As for auto insurance companies, my friend runs a pretty large body shop owned by a dealer group in MD and of all the insurance companies he deals with from the body shop side, he says Eerie is the best hands down where the other insurance companies including USAA fight him on what needs to be fixed and price.

Johnhav430

I like choosing my auto insurance based on what hockey players think. Cure Auto for me, baby!

A runner up is "the General."

Johnhav430

This is a strange one--my agent assures me, if you make any changes within 30 days of a renewal, there is NO price change, when removing, or adding, cars. Because my BMW was off the road, I dropped the insurance. I got no credit and that was the explanation.

I asked, if I were to add a Lamborghini Murcielago to my policy, and it were 29 days before renewal, you're telling me I'd be covered and the price wouldn't go up? He said yes, 100% the case. My point was if I would get no credit I would have kept the BMW on until renewal.

edit p.s. thought of an example which may support what the agent is saying--we bought a GM SUV Labor Day weekend 2011. The dealership in PA slapped plates on the vehicle and we took it. He said our current policy covers it, and I have up to 30 days to add it. I wouldn't go by what a car salesman says, but rather the observation that they can legally issue license plates. Wouldn't it then pay to wait 25+ days to add the car, to save a few bucks? If it's all legal? But I'd rather be covered for sure..

patgilm

My GTRs were not sold and purchased within the 30 day grace period. I purchased the second one a couple years after the first one. It was just shocking how much my yearly rate was on the second one compared to the one I had a couple years prior so I complained about it and there was nothing they could do. However, the rate went down on my current GTR this year by about $550 a year which is actually lower than my first one. It is just weird to me.