Cheapest Car Insurance in Wisconsin | Wallet Hub

What does it say about car insurance companies that so many have celebrity endorsers?

The insurance industry falls under the ‘unsought’ category of consumer products. This essentially assumes that consumers either do not normally think of buying it or do not actively seek out information regarding it. Any business would want their product/service to climb the consumer mind space and enter their evoked set to ensure top-of-mind recall. In the case of insurance companies, they need to first counter consumer knowledge or lack thereof, then they need to ensure that once they think of insurance, they think of their brand.

A study on marketing psychology (done at Wharton) yielded two significant findings:

1. People are more likely to choose products that are endorsed by a celebrity rather than a non-celebrity, and they make that choice faster.
2. When a celebrity is featured in an advertisement, viewers tend to linger on the face of the famous person more than the product.

From an insurance company’s point of view – a celebrity brings instant interest and attention to their consumer. So, they are using multiple celebrities to catch the attention of different demographics and a wide array of audience. They are, however, risking the audience remembering only the celebrity and not the brand. Hence, insurance companies will aim to create a good balance between celebrity exposure and brand messaging.

From a consumer point of view:

1. Insurance – home, life, rental, car, etc. are a vital part of anyone’s financial planning.
2. No matter what the company’s advertisement says, it should be common practice to do your own research, understand your budget, and then make the smart choice.
3. Celebrity endorsement should only make you aware of a brand; selection should be based on one’s own research and understanding.

Just as you would not simply buy a Rolex because Roger Federer endorses it, you need to apply the same logic to relatively inexpensive brands/products as well.

Do you think car insurance companies try to mislead customers, or is it just marketing?

Ethical marketing wherein a company does not use false pretexts, over-promises, or gives false statements is not only a need but a basic right for any consumer. This means, that if at any time, any company tries to mislead their consumer through false advertising or marketing – they need to be held accountable. Car insurance companies are not exempt from this rule.

Any company/brand will use all their marketing expertise to try to give their consumer what they believe is the best messaging to help create a positive image. Insurance companies have in the past used the fear angle – ‘What happens if you do not have insurance, and you get…’ Some companies might still use this technique. This is not falsified information, just a dramatic version of truth. Remember, advertising is also meant to be entertaining and fun, not just educating. In the long run, marketing is supposed to create an image that their consumers can like, trust, and hopefully grow to love. In today’s day and age of information access – consumers are also more aware and smarter. So, if any insurance company tries to mislead any consumer – they run the risk of consumers announcing their bad experience to the world within minutes; on any of the social media platforms.

Source: Cheapest Car Insurance in Wisconsin (feat. UW-Green Bay’s Anup Nair), Wallet Hub