Insurance isn’t always the most interesting topic to think about. While everyone needs it, insurance can be more of a confusing product rather than an exciting purchase for most people. And with so many different insurance companies to choose from, it can be hard for customers to decide where to turn to.
Insurance companies worry about this same thing. They want to know how they can separate themselves from all of the other competitors. Insurance hasn’t always been a hotbed for creativity. But with ingenious marketing techniques, it’s hard to argue any other product has better advertising than the insurance world.
We’ll talk about some of the best ways insurance companies have taken advantage of their strengths to gain new customers. From Metromile insurance and its unique pay-per-mile approach to State Farm’s star-studded celebrity endorsements, there are a ton of ways insurance companies are changing the marketing game in 2022.
#1 – Progressive’s Bundle Insurance
Lots of insurance companies use bundling techniques to acquire customers, but Progressive in particular uses a lot of its advertising time to cater to this method. What exactly is bundling? It’s when a customer goes through the same insurance company for multiple insurance policies. This is usually combining home and auto insurance together.
The method is mutually beneficial for the company and the customers. Because some people need both of these insurance policies, companies like Progressive give you a percentage discount on them if you choose them for both.
Customers will be paying less than they would if they went through two different companies for their insurance. The insurer is making way more money because they are effectively getting two customers at once: an auto insurance customer and a homeowners insurance customer.
Customers should still look into whether these deals are better for them than finding a cheaper policy with another company. Don’t just listen to the commercials that talk about getting 5% off. There are always loopholes and other small details that can be missed. Being told to evaluate all the options is always the best financial advice you can receive.
#2 – USAA and Military Customers
USAA has prided itself on catering to military members and their families for decades. This is because the company was founded by military members who were having a hard time finding insurance.
USAA wants to give its members the best policy regardless of whether they served. They don’t want the military or other family members to go without insurance coverage.
This gives the company a unique angle, as they are dominating the market within their demographic. Most military members who go through USAA get their children and future generations to sign up. This means the company gets a continuous stream of new customers through the years.
#3 – State Farm’s Celebrity Endorsements
It’s hard to argue any other insurance company has used celebrities more effectively than State Farm in the last several years. These endorsements bring heightened awareness to their brand. Sometimes the celebrity is able to even talk about a specific policy, like Aaron Rodgers and the discount double-check.
It may seem superficial to use celebrity endorsements, but State Farm is one of the most profitable insurance companies in the world. They continue to use these commercials because many people are intrigued by their favorite athletes and entertainers.
These endorsements both educate and convince viewers their lives will be better off with State Farm than with another insurance company. This is why they use the “like a good neighbor” line in all of their ads. It lends credibility to the company when celebrities want to endorse them, and it shows they are as trustworthy as their slogan indicates.
State Farm is an easy company to understand its unique practices. They focus on their ability to communicate with customers. Agents are supposed to be more than just agents. They are your friends. This understanding between the two sides is supposed to make the company stand out from others.
#4 – Metromile’s Pay-Per-Mile
While a lot of insurance companies give you discounts for driving less, Metromile caters their entire company toward this idea. The pay-per-mile program they have uses a detection system called Pulse. The technology plugs into a person’s car, delivering accurate results to the company about the number of miles driven.
This is much more thorough than other companies asking for an estimate of the number of miles you drive. Customers know Metromile is trying its best to offer the most up-to-date methods to give out insurance policies. Their website is known for strong digital marketing techniques that have been tweaked throughout the years.
With this trust, new customers know the company will continue to innovate and adapt to the times. It’s kind of shocking other more famous insurance companies haven’t found a way to imitate this program yet. The closest thing others have are devices that track driver behavior like speed and braking.
#5 – The General and Unconventional Customers
The General uses some of the same marketing techniques that USAA does, but they are a little less specific. While USAA targets military members due to being deemed high risk, The General wants to take in all types of high-risk customers. They focus on giving people a chance who otherwise wouldn’t be able to find insurance.
This doesn’t mean they won’t give you higher rates for poor behavior. The General is all about encouraging people to improve if they are given a second chance. They want all their customers to get a fair shake without the generalizations surrounding things like gender, age, and past driving mistakes.
Overall Trends in Insurance Marketing
Insurance marketing techniques have a few things in common. They want their customers to know they are more than just a business partner. Insurers want their agents to feel like friends to the outside world.
Insurers want to incentivize safer driving with discounts, and they use TV commercials to show how their discounts work. Sometimes it can feel like these advertisements are just for show, but they are often snappy, witty, and to the point. This combination of informing and entertainment is sure to continue to succeed for all of these companies.
Shawn Laib writes and researches for the insurance comparison site, ExpertInsuranceReviews.com. He wants to inform people of the different ways insurance companies try to sell policies to the public.