When it comes to buying auto insurance, GEICO is trying hard to get you to switch. The company spent more than a hundred million dollars on advertising last year. The commercials make it look like a phone call to GEICO could mean big savings. Consumer Reports checked to see.
This particular GEICO commercial uses dogs to promote its auto insurance. And like all GEICO ads, it gives the impression you are bound to save money in short order.
"Fifteen minutes could save you 15 percent or more on car insurance."
Consumer Reports checked out that catchy ad line, asking staffers to make a call to GEICO.
"I am calling to get a quote on GEICO auto insurance."
They wanted to see if GEICO would give them a quote in 15 minutes and just how much they could save on their car insurance.
GEICO did deliver the quotes in about 15 minutes or so. But only four of the 14 people who called would save by switching to GEICO. The others would actually be paying more.
"I'd be paying about 200 dollars more with GEICO than with my current insurer."
Some would have seen an even bigger increase with GEICO. Six-hundred-and-eighteen dollars more for this staffer.
And 689 dollars more for this staffer.
Lisa Freeman, Deputy Editor of Consumer Reports Money Adviser, says though you may not save with GEICO the idea of shopping around is right on the money.
"If GEICO gets you to make a phone call to check out what their rates are. That is great. Just don't stop at GEICO. Keep calling. A few phone calls can save you hundreds of dollars in auto insurance premiums every year."
Like these dogs in the GEICO commerical, Consumer Reports says if you don't check the going rates for car insurance, you could be taken for a ride.