Why Usage-Based Car Insurers Need Don Draper

Ellen Carney

Don’t you hate when a company advertises a product but fails to make it easy to find and buy?

Mad Men’s Don Draper, who, in the 1960’s could have been as likely to work in insurance as advertising (but the story would have been not nearly so interesting), would have a field day with the findings from Forrester’s just published report, “The Next Act For Usage-Based Car Insurance”, the first in a four-report series addressing the UBI landscape in the US, Canada,and Europe and the future of UBI. 

Smart devices, smartphones, and smart cars are converging to create what should be a smart insurance choice for safe drivers and their insurers. The report examines American consumer interest and adoption of usage-based car insurance and the obstacles to purchase, many of which point directly to insurance eBusiness failings.

When Forrester last looked at the UBI market in 2008 (then termed “Pay As You Drive” or PAYD), consumers couldn’t get it because of a big distribution problem:  It was offered by few insurers in just a few states.  A couple of months ago, we decided to see just what had changed over the past five or so years when it came to consumer interest and purchase.  What did we learn?

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Usage-Based Insurance Onboarding: It's All In The Packaging

Ellen Carney

Alright, I admit it.  I'm not necessarily the most loyal insurance customer.  I like mixing things up to test out different experiences, which means that if you're my insurance company, I'm going to talk about you in my job...a lot.  

Back in 2012 when I was writing the US Secure Auto  Insurance Site Rankings report, I changed my car insurance to Progressive (so underwhelmed was I by their predecessor, I can't remember the name of the insurer, just that I got from my agent).  And I not only changed to Progressive, I also switched from a traditional auto policy to the company's usage-based insurance coverage, SnapShot.  

A few days after signing up, I was surprised to get this box in the mail--note the SnapShot logo on the packaging tape (and trust me that there's a Progressive logo on both ends of the box).  Best of all, there was a compelling call to action on the box:  "Plug In Today!"

                                                                    

And inside the shipping container?  This smaller box, about the size of...the box an engagement ring might come in.  Oh my!  I felt like I was about to go with Flo on a Thelma and Louise-like adventure, assuming that we'd be safer drivers than they were, at least when the movie ended. 

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