They're doing what? Readers react to Google's auto insurance plan.

Last month, search engine conglomerate Google announced it is

throwing its hat into the auto insurance ring. This is big news for the

industry, most especially for independent agents already dealing with

competition from other direct insurers like Geico and Esurance.

NU-PC360 reader response to the news was mixed, but most felt

Google customers would be missing out on the “personal” part

of personal auto insurance.

Commenter Maria Parker says, “I have [been] preaching for

years that the policy you buy is only as good as the [a]gent that sold

it to you and the service and individual attention that they give you.

Being a 1-800 customer may be fine for the moment and save a few bucks,

but then what happens when you need help and no one knows you? […] I

think that once a customer needs assistance and experiences the 800#

form of customer care, they will realize what is important to

them…saving $15 or having an agent that cares and actually helps them

when they need it.”

Tim D’Angelo echoes a similar sentiment, advising agents and

brokers to “[b]e someone in your local community that customers

KNOW, LIKE, and TRUST. If your customer leaves you for $12/mo savings,

you failed on one or more of KNOW, LIKE, or TRUST.”

Chris Larsen comments that some agents aren’t adhering to

D’Angelo’s advice, citing personal experiences with agents who

seem to take a hands-off approach when it comes to claims handling.

“[Agents] distanced themselves from the claim process, giving me

the idea that they did not want to be involved with or allied with their

claims personnel and practices,” he says. “Insurance agents in

my earlier years were involved with me and my family. They stayed in

touch throughout the year. Nowadays, they give me the feeling that I am

being taken for granted.”

Commenter sdlifer replies in agreement that some agents are aloof

to the claims handling process. “[Agents] are employees of

[insurance] companies and represent the companies’ interest, not

yours,” sdlife comments. “They will always refer you to the

claims departments and say ‘I am only an ‘agent.'”

Other readers are concerned how having a search engine mogul

involved in this space will effect advertising in the auto insurance

space, now that the search engine itself is competition.

William Johnson says: “I pay good money to Google for ad

words. Now what will be the point? If someone looks up my insurance

agency using my company name directly, Google will probably come up

first. They’ll lose tens of millions in advertising.”

Mike Wise isn’t so sure that agents will lose money by being

bumped down in search results, however, claiming word-of-mouth referrals

are still the preferred method of finding an insurer.

“Word-of-mouth referrals have always trumped blind search,” he

says. “Before the internet, a recommendation from a friend was

always better than flipping through the yellow pages, right? The same

holds true today, doesn’t it? So doesn’t social trump

search?”

Wise goes on to explain customers may have an issue trusting a

direct insurer — especially one like Google which is known for

possessing a weath of customer data. “Plus you have the issue of

trust,” he explains. “Everyone knows Google has all the data

and is making big bucks from it. But not everyone wants to then pay them

a monthly premium.”

What do you think? Let us know in the comments below. Click here to

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The post They're doing what? Readers react to Google's auto insurance plan. appeared first on 2014 Stingray.

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