Auto and Car Insurance

Do you think this Geico ad is deceptive?

Geico Auto insurance says in their radio advertisement that "you can save $500 by switching to Geico" (we'll even assume that the $500 figure is accurate - but they don't state where the $500 figure comes from). I think this ad is clearly deceptive for several reasons. First of all, it says you "can save" money, not that you "will save" money, but it gives the opposite impression. Next, it implies that Geico insurance is (on average) $500 cheaper than insurance from other companies which is blatently false. And finally, and most importantly, it bases the $500 savings on people that "switch to Geico" only. It's not a comparison of all Geico rates with the rates from other companies. So, naturally, if you switched to Geico (and most people switch companies to save money), their rates will appear to be less than the company they switched "from".

Public Comments

1. No I do not think it is false advertising. I got quotes from Nationwide, State Farm, Progressive, AIG (whom I work for), Liberty Mutual, and 21st Century (before AIG bought their business). Geico, for six months I pay $427 - I have the state maximum coverage, zero comprehensive deductible, fifty dollar collision deductible, rental reimbursement, tow & labor, medical/PIP coverage, and I have a 2006 Hyundai Santa Fe. I have never had any accidents or speeding citations. A lot of times insurance is based on your credit and what most consumers do not know is that, you NEVER have to provide your social security number to get insurance! Your occupation and marital status does make a difference. Your zip code also make a difference in your insurance premium. When I first moved to Florida, I had Nationwide Insurance, in which I was paying pretty close to a thousand dollars for SIX MONTHS, then I called Progressive and got a quote, and I paid right at NINE HUNDRED dollars for six months! Then I called Geico and my premium was $500 for 6 months, but after being with them for 3 years, my premium has continuously dropped - as I haven't had any accidents or tickets. Most insurance companies (even AIG) say that you "Can save" it does not guarantee that you will save XX amount of dollars. Good luck! ;-)
2. yes the british lizard and the cave man is deceptive
3. The argument is very basic and doesn't make claims (as you rightly pointed out 'can' vs. 'will'). From personal experience, Geico does offer very good rates (they outbid competitors twice for me in IL and NY). Because car insurance business is based on individual quotes, it's impossible to be equally competitive for each individual. Hence, I am OK with this ad. I agree, though, that these claims need to be taken with a grain of salt.
4. I think their advertising is genius. They even have a spin off that is a TV show. I called them...they weren't cheaper than any other car insurance, but I'm assuming that since their ads run all day and night...they are a successful company! They're just not gonna get my $$.