Auto Insurance the way I figure it could be free!

Chapter 33

Auto Insurance the way I figure it could be free!

I am amazed at the number of auto insurance companies that advertise on TV. There must be at least a dozen and half that number that seem to dominate. Hardly an hour goes by without seeing an ad from one of the following: GEICO, Progressive, the General or Allstate (and their online subsidiary, Esurance). Ig I have been amazed at these companies stating that I can save big bucks if I switch to them. I wonder how that can be when they are spending so much on advertising, but then this is a $22 Billion a year industry!


Rank   Company/Group 2013 Direct Premiums Written ($1,000s) Market share %
1   State Farm Group 33,611,001 18.48
2   Berkshire Hathaway Insurance 18,622,626 10.24
3   Allstate Insurance Group 18,067,452 9.93
4   Progressive Insurance Group 15,373,142 8.45
  5   Farmers Insurance Group 9,880,905 5.43
6   USAA Group 9,167,242 5.04
7   Liberty Mutual Insurance Cos. 9,036,455 4.97
8   Nationwide Group 7,279,835 4.00
9   American Family Insurance Group 3,441,682 1.89
10   Travelers Group 3,178,692 1.75

I have two cars, one with full coverage and the other with everything except collision. I pay just over $1,100 a year for my insurance. One company claims I can save 15% and also up to $550, another, AARP (through the Hartford), $404 per year, $489 with State Farm (all of these claims were taken from Internet sites). So, in theory all I have to do is make three switches and by the time I am covered by the 3rd company they will pay me to be with them!

The bottom line is that I guess these folks must think their potential customers are idiots? As a side note, I picked three companies that claimed I could save and requested quotes for identical coverage and………of course they were all much higher (in one case almost double).