How much does the "Gecko" tacked on to your auto insurance to pay for their commercials?

[orion_98]

I had a thought the other day when a barrage of “the gecko” commercials kept coming on TV. How can “the gecko” save you money when he’s paying for all those commercials? Then a portion of your insurance premiums must be paying for the commercials. So how can they save you any cash when they’re tacking on extra fees to pay for all that advertising? I think they get you in the door with low rate and keep raising it over the years until your paying way more than you should be.

[Christina]

Seeing that cute little guy on tv makes it all worth it.

[mbrcatz]

Nothing. Insurance rates don't work that way. Just like, when you use an agent, there's no "extra fee" tacked on to pay for the agent.

Rates are filed with the state insurance commissioner. Those rates, include ALL the costs of doing business, including advertising, taxes, claims, and paying commissions to agents.

Geico doesn't use agents. Advertising is the ONLY way they can get new business.

[Insurance_Pickle_c]

Geico actually does use agents. I know one. But, it's like anything. All companies have marketing budgets and the bigger the company, the bigger the budget (usually). And certainly the cost to run commercials is ultimately in the premium -- just like McDonald's commercials trickle down to your 1/4 Pounder. It can affect the bottom line as AFLAC isn't the most competitive company that sells the type of policies AFLAC sells. But, undoubtedly AFLAC is more of a household name than their competitors regardless of whether they're more competitive.

You'd have to look at their marketing budget and you'd have to look at the premiums they collected to determine the answer. OBVIOUSLY the money to run the commercials comes from the premium because commercials aren't free. Premiums are indeed regulated by the commissioners but the premium they approve contains the companies' cost to do business.

[StephenWeinstein]

The advertising costs much less than other companies pay their agents.

A company that pays for neither agents nor advertising might save even more money, but how would you know they existed?

A company that pays for ads and not agents can save more than a company that pays for agents.

And I have had insurance from the "Gecko" company since 1996 and they have never raised my rates except when I caused it by moving to a place with higher rates or by adding more coverage. F

For the first several years, they lowered my rates every year if I did nothing to raise the rates.

[carmelita_mauzey]

Last time I renewed I went to www.auto2insurance.tk. I cut my renewal by nearly $150. I enjoyed how quickly I was able to compare the savings of all the insurers.

[Tony]

autoinsurance.bebto.com - I switched to this car insurance from them, cause it gives much cheaper rates in my area.

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