Zero Sum Games in Auto Insurance

+ Posted by Josh Hallett on 10.29.05 // 02:28 PM

It seems that the auto insurance business is a zero-sum-game. Every ad on TV/radio from: Geico, Allstate, State Farm, Esurance and Progressive, all state that 'millions of people switch to them every year'. I guess those 'million' people coming to one firm had to leave another.

You never hear one firm saying, "250,000 people left us this month."

Visitor Comments

Another interesting thing is the 15% geico, 21st, progressive. The reason they say that is that their marketing people found that a 15% difference in price is what it takes to get people to switch companies

That's right. People don't just dump their car insurance coverage en masse and never purchase it again. Good observation.

This blog posting was of great use in learning new information and also in exchanging our views. Thank you.

Oscar DeMaria

http://www.automobileinsurancecheap.com

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