2007-03-22 08:48:33 · 8 answers · asked by JJ 2 in Business & Finance ➔ Insurance
It's marketing, but the rates are not always 100% accurate. Just for fun, I put my car into progressive to see what they would give for competitor's quotes. My company was one on there and it was $400/ 6 mo. higher than I actually pay! I don't think it included any discounts. Anyway, point is don't trust'em, the best way to get a quote is contact an agent and let them create a quote for you.
2007-03-22 13:12:09 · answer #1 · answered by Nate W 5 · 0⤊ 0⤋
It's a marketting strategy. They advertise that they will show you the rates of other companies to get you to their website. Once you are there, they give you a quote for their insurance and sometimes for some of their "top competitors" (not always their top competitors, and sometimes they simply say that they cannot provide your desired information).
It also shows the customer that they care about what is best for the customer. They hope to gain customers by giving great customer service like this.
2007-03-22 08:59:31 · answer #2 · answered by cuztis209 4 · 2⤊ 0⤋
By advertising that they provide rates of competitors, they give the impression of a one-stop solution to your search, so that entices into their website. However, most people don't realize that each insurance company owns a multitude of companies, each with different rating tiers. They may be giving you a rate through a name you recognize, but the underwriting company can be inferior. If you contacted that competitor directly, you might qualify for a much better rate.
2007-03-22 09:39:58 · answer #3 · answered by Zinnia 2 · 1⤊ 0⤋
It's a way to present an honest image of the insurance company - they definitely will lose some sales by doing this strategy, but if their pricing is reasonably competitive, they will pick up more sales than if they didn't pursue this strategy. Consumers generally never trust any insurers, so any strategy that is honest about the marketplace does have a certain appeal to many people.
2007-03-22 09:09:13 · answer #4 · answered by KatGuy 7 · 1⤊ 0⤋
They do this to weed out the people they don't want. If you have crappy credit then companies will put their price higher & show the competitors as lower if that is a risk they don't want. You may want to try a website that compares multiple companies at once to get you the best price. I am paying less than ½ after I did.
Go to: http://www.insureme.com/landing.aspx?Refby=616165&Type=auto
Take care,
Casey
2007-03-25 00:32:47 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Most don't - actually, Progressive is the only one that does. And althouhg I haven't asked for them, I'd guess that it's competitors that have HIGHER rates than Progressive.
If you have a good credit score, Progressive can be EXTREMELY competitive.
2007-03-22 09:46:00 · answer #6 · answered by Anonymous 7 · 0⤊ 0⤋
They want you to think that the rate you are getting is the best one out there, and therefor go with that company.
2007-03-22 09:01:59 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Easy, the first lier never has a chance.
2007-03-22 09:37:09 · answer #8 · answered by gvh 3 · 0⤊ 1⤋