Can you think of a time when Allstate or State Farm would be forced to play second fiddle to new comers in car insurance? Or even acknowledge the presence of competitors? Laugh as you might, the day has come. Companies which have come into the market breaking price barriers, such as Progressive and D.C. based Geico are earning the status of challengers to the big bad boys of U.S.'s largest auto-insurance providers.
The secret - technology, direct-sales and cool branding. The challenge – to make you change your car insurance buying habits and company. And make you shop around constantly for the best in car insurance, irrespective of whether you are considering your changing your car or not.
So much so that Geico and Progressive continued to grow even during the recession. But Allstate or State Farm still enjoy customer stickiness, employ CRM techniques which help them cross-sell and win over customers across the country.
It’s been a long road for insurance companies. Most Americans, hit by rising gasoline prices, have done one of two things – they have either decided to wait longer to upgrade, or worse, they have decided to reduce the number of cars they own.
In the end, that means fewer new policies. No wonder, consumers are listening to the new age car insurance companies, who are questioning them through in the face campaigns, stating that they might be paying too much for their car insurance, or missing out on discounts or not getting the best customer service.
The younger generation of drivers expects everything online and that applies to car insurance too. Thus giving a whole new spin to customer service. So insurance is selling either on the Internet or by phone — rather than through an agent, making a dramatic impact on the insurance-distribution landscape.