3 (More!) Ways Traditional Insurance is B.S.

You've read 3 Ways Traditional Car Insurance is B.S.?

Awesome. We're not quite finished. Here are more ways traditional car insurance is screwing up.

It’s B.S. because so much money goes to mascots.

How many insurance mascots can you remember?

Yeah. That's what we thought.

Auto insurance spends more on advertising than any other industry in the US. And that money is coming from somewhere. (Hint: your pocket.)

If you're a Geico customer, for example, about 6% of your policy check is going to their 1.1 billion dollar annual ad spend.


Essentially, ordinary families are paying for all those car insurance mascots, celebrities, spots, and massive Super Bowl media buys. And that doesn't seem fair.

It’s B.S. because of all the gimmicks and confusion.

By itself, car insurance is a simple and valuable product. But in the rush to acquire customers, insurance companies have made up a bunch of add-ons and programs that end up costing the consumer money.

Make no mistake: you pay for "vanishing deductibles," online “signing discounts,” and other such gimmicks—even if the costs are hidden. There's still no such thing as a free lunch.

And all these extra gimmicks add to another big problem: it's already hard to understand what you’re getting when you buy car insurance. What's worth it in the long run: a low deductible or a high limit? What's the difference between "medical payments" and "personal injury protection"?

Why add a boatload of complications on top of all that?

It’s B.S. because it’s in the Stone Age.

You probably aren’t surprised to hear that when it comes to innovation and technology, insurance companies are way, way behind the eight ball. Like every other industry, they've had their chances to invest in engineering and upgraded technology over the past few decades—but they've largely said no.

The price? An inability to move quickly or innovate into new technologies. Traditional insurers are patching new solutions onto outdated systems—and that only works for so long.

Compounding the problem is a resistance to new ideas. And here’s the thing: it’s not because insurance companies don’t want to innovate, it’s that innovation comes with too much risk. The Root model—only insuring good drivers—would be terrifying to a traditional insurer. They're in a marketing arms race with each other and can't afford to lose customers. They’ve become too big to take leaps.

As a result, you get to enjoy a clumsy, dated experience and a poorly designed product.

Okay, by now you've gotten the picture. Had enough of the B.S.? So have we.

That's why we're changing the game..

Click through to see what fair insurance actually looks like.


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