Google Officially Enters Auto Insurance Space With Expansion to Come
March 5, 2015 by Michael Buck, senior associate editor, BestWeek: Michael.Buck@ambest.com
MOUNTAIN VIEW, Calif. – Google Inc. has launched its car insurance comparison service in the United States, a much anticipated move that has been discussed in advance by industry executives and analysts.
“This represents the newest addition to a suite of Google Compare products designed to help people make confident, more informed financial decisions,” the Internet search giant said in a statement.
The service, which is only in California at the moment, allows consumers to compare auto insurance offerings from national carriers to regional ones, the statement said. Users can also adjust things like their deductible or add cars to tweak the quote, the company said in a statement. Policies can be purchased online or over the phone through a carrier’s agent force.
Google is compensated through a cost-per-acquisition model, but it noted that payment isn’t a factor in comparison rankings or eligibility. Additional features, like ratings, reviews and local agent support are forthcoming, the company said.
In the announcement, Google showcased two carriers that have signed on to the service: MetLife Inc. and Mercury General Corp. Erik Thompson, Mercury’s advertising director, said in the statement the service gives his company an opportunity to connect with a market segment that might have otherwise been out of reach.
“The lifeblood of Mercury’s business has and always will be our partnership with independent agents,” Thompson’s statement said. “We also know many shoppers want to buy anytime, anywhere, and Google Compare gives them a fast, easy way to do so.”
Mercury President and Chief Executive Officer Gabriel Tirador has previously discussed his company’s involvement with the service (Best’s News Service, Feb. 9, 2014). Other executives have commented on Google’s insurance ambitions. Infinity Property and Casualty Corp. Chairman and Chief Executive Officer James Gober said he thinks Google’s service could be a good thing for his company.
Allstate Corp. Chairman and Chief Executive Officer Thomas Wilson has hedged in his view. Speaking last month at an insurance conference in New York, Wilson said Allstate was trying to determine if Google is its “friend or enemy.”
While Google is currently operating its service only in California, it has been licensed as a sales producer in several other states and inked affiliations with several underwriting companies (Best’s News Service, Jan. 9, 2015). The company is being licensed as Google Compare Auto Insurance Services Inc. and was licensed in some states as recently as November.
MetLife Auto & Home Group companies and Infinity Property & Casualty Group companies currently have a Best’s Financial Strength Rating of A (Excellent), while Allstate Insurance Group companies and Mercury Casualty Group companies are currently rated A+ (Superior).