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Insurance companies devote a great deal of money to advertising. Everyone can fill in the blanks here:  “You are in good hands with _____________”; or “Like a good neighbor, ____________ is there”;  or "_________ is on your side”.  

According to a study by Kantar Media, the total advertising spending by insurance companies in the United States reached $9.63 billion in 2020, which represents a 7.5% increase from the previous year. This includes spending on television, radio, print, digital, and other advertising channels.

Advertising is an important and significant expense for many insurance companies but just as insurers can come up with great slogans or great advertising, they can also come up with senseless ones. One of the more head scratching is Liberty Mutual’s ad about only paying for what you need.  How can that be true? How much does it cost to replace a home or a business destroyed by an insured peril?  Who can tell?  Further, many insurance companies offer some level of customization, the degree of flexibility and transparency can vary. Some insurance companies may have more rigid policies with fewer options for customization. Other insurance companies offer a wide range of options but with less transparency around pricing and cost.

Ultimately, it's important to carefully review and compare policies from multiple insurance companies to find the one that best fits your needs and budget, regardless of their marketing slogans.  And, if you need a recommendation as to who pays easily and who does not, at Brown O’Haver, we have lots to say on that topic.