OT: Auto insurance

[Steve Kraus]

What amuses me are the commercials by Company A (although others run similar spots) which assert that "People who switched saved an average of X dollars."

M "People WHO SWITCHED..." past tense. People who DID switch.

Not that most people will find them cheaper. For all we know, they might be more expensive in the vast majority of cases. But everyone is different and there may be a handful for whom they are cheaper. But not just a little cheaper, but enough so to make it worth their while to switch. Thus, filtering out all those for whom they are not cheaper or not significantly so.

So of course people WHO SWITCHED are going to find them to be significantly cheaper. Otherwise why would they switch? It's practically by definition!

But that's not all. The full assertion is that "People who switched saved an average of X dollars. Y dollars if they dumped" Company G.

Y > X

Surprising, since Company G is famous for having lower rates.

How can this be?

If X is the average savings of all the people who switched and and Y is the savings of just those who left G for A and it's a greater amount, it can mean only one thing.

It means that it took greater savings to lure people away from G.

So G customers must have greater loyalty to G than the overall average.

It takes more savings to pry them away!

Maybe because G has more amusing commercials?

I dunno. This commercial from A is plenty amusing if you really think about what they are saying.

Bottom line: "People who switched" is a completely meaningless statement because it will pretty much always be true for any company.

[Doug]

Same experience here. Many years ago, my old agent(s) would tell me what or where to go for cheaper insurance. Now I get the same service (or lack of) as you mention above. I think the same as you and to be honest if they get a commission, why do they want us to have a lower bill????

[Jim Elbrecht]

-snip-

Mine must be smart enough to know that 2-3 large commissions will never equal the 20+ smaller ones she's gotten from me--- or the dozens of others that she's gotten because I never pass up a chance to sing her praises. And she probably sleeps well nights, too.

And by the way-- I don't think that she always gets me the

*cheapest* insurance. But on the 2-3 occasions that I've had to make a claim, there is no doubt that she has steered me towards the *best* companies.

Jim

[George]

Just good business sense. If they aren't proactive they aren't going to keep you as a customer.

[George]

After working many years in responsible positions in big companies the best plan is to simply avoid the companies that spend considerable marketing effort to tell you how good they are because there is a 99% chance they are exactly the opposite of how they portray themselves.