This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Car Insurance Is No Laughing Matter Yet Many Drivers Distracted By Funny Ads Focused On Price

Stocks in this article: ERIE

ERIE, Pa., March 20, 2012 /PRNewswire/ -- "Laugh and the world laughs with you" is a mantra that has been embraced by many in the car insurance industry in recent years, with some companies spending hundreds of millions of dollars on ads that use humor to get attention. While laughter might be an easy way to entertain, a new survey from Erie Insurance reveals that the onslaught of car insurance ads focused on price are causing some consumers to forget about coverage.

(Logo: http://photos.prnewswire.com/prnh/20041112/ERIELOGO)

The majority of survey respondents (68 percent) agreed that most funny car insurance ads were about saving money. While respondents ranked coverage as the most important consideration when shopping for car insurance, three-quarters (74 percent) admitted that the blitz of car insurance commercials focused on price have caused them to forget about coverage choices that affect how well they are protected.

"People are making very serious decisions about their financial well-being based on punch lines," said Cody Cook, vice president and product manager at Erie Insurance. "Insurance is complex. Making a decision based on price alone and without the consultation of an insurance expert can have serious repercussions."

Interestingly, more than half of survey respondents admitted that even after they bought car insurance, they still weren't certain they had made the right decision. When asked to define basic insurance terms:

  • Forty-eight percent thought Liability or Comprehensive coverage paid for the damage they caused to their vehicle if it hit another object. Collision coverage pays for the damage to one's vehicle if he/she is at fault in an accident; and
  • Fifty-four percent thought an Affirmation or Premium was the term for changes and/or additions to a policy. The correct term is an Endorsement. Affirmation isn't an insurance term.

The Insurance Information Institute, a group dedicated to helping consumers better understand insurance, recently cautioned against selecting an insurance company based solely on price. Instead, it urged consumers to seek out companies with reputations for excellent customer service that will handle claims quickly and fairly.

"We think it's time to get serious about car insurance," said Cook. "To truly understand what you're buying and ensure your family is protected, you'll benefit most by having expert guidance from a local agent you know and trust."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,255.82 +64.45 0.37%
S&P 500 1,999.46 -2.70 -0.13%
NASDAQ 4,621.5660 -16.4280 -0.35%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs