Lower Insurance Premiums Sans Commercials and Printed Advertising

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If you listen to the advertisements you can save hundreds of dollars switching car insurance companies. Likewise, your mail box most likely is a nesting spot for several of the companies' mail campaigns, as they send out more junk mail touting their ability to save you big dollars over the rates of their competitors.

If you are one of the 200 million plus drivers in the United Sates then you are well aware of the junk letters mentioned above. And you may be interested in what they have to offer, especially if you have teenage drivers on your policy. Yes, these advertisements bring new customers to the companies, usually those dissatisfied with their current insurer, or those who can actually save a few dollars switching insurance companies. But a deeper look into those nefarious ads might be scarier than anything you might run into this Halloween.

The top ten auto insurers control roughly 70 percent of the auto insurance market share, while the top five have garnered over 51 percent of the market share. That's equal to roughly 100 million policies and contingent on where you live a single policy can run anywhere between $900 and $5,000 a year, or more.

Taking a simple average doesn't work in this case as insurance coverage is dependent upon many factors, including crime rates, traffic patterns, population density, driver age, and coverage levels desired such as liability, collision, and comprehensive.
For arguments sake, let's use $2,000 as an average policy premium as an example. If such is the case then the top five insurance companies rake in some $2 hundred billion for average policies yearly and the top ten rake in $4 hundred billion dollars on car insurance policies. Staggering? You bet, especially when you consider a vast number of drivers never have to use the insurance coverage.

Some of the top insurance companies advertise continuously. They have television campaigns, postal media, and radio advertising. The average cost of a national television advertisement campaign runs between a half million and a million dollars, though some cost less, others significantly more. The US Postal Service charges $.44 cents to mail a letter, though mass mailings get a reduced rate. Radio advertising is a highly selective media. There are about 13 thousand radio stations in America and most insurance advertising is targeted toward huge metropolitan areas, giving insurance companies a bigger bang for their buck.

So where does all this lead us. It leads us to the waste basket, and trips to the snack bin during TV commercials. If the average household gets printed advertising from three of the ten biggest insurance companies once a month did you ever wonder by how much could could premiums be lowered if half of that material wasn't sent to the local dump in the first place? The insurance companies could lower premiums, as they would incur lower overhead costs.

TV ads, so it seems, run continuously. If half of them were cut, by how much could insurance premiums be lowered? Again, lower overhead, lowered administrative costs, lower production costs, and lower postage equals lower premiums.

But don't hold your breath, insurance companies are run like most businesses, they subsist on greed; a one percent reduction in revenue would be counted as a loss, even though they might be making a twelve percent profit.

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