At the end of April, Walmart made a bold move onto a market which the company feels could use some significant improvement. The biggest retailer in the world now offers car insurance in partnership with an online portal that helps customers compare real prices in real time. The service first became available in eight U.S. states. This new Walmart insurance covers Texas drivers (alongside Arkansas, Louisiana, Oklahoma, Pennsylvania, Mississippi, Tennessee, and Missouri drivers). Walmart insurance will be made available throughout the country over the coming months. Today, we’ll take a look at how this service works, what it means for Walmart, and how it stands to impact the auto insurance market in Texas.
Walmart Insurance Covers Texas Drivers – How and Why to buy Dallas Auto Insurance at Walmart
Walmart intended to enter the insurance market for a long time. They recently seized the opportunity with car insurance. According to company representatives, this type of coverage is currently both expensive and complicated to shop for. In other words, the industry could use some improvement. By teaming up with AutoInsurance.com, Walmart believes the move can benefit its customers. At the moment, car insurance premiums may cost members more than healthcare costs. According to Joshua Kazam, the founder of AutoInsurance.com, only 20 percent of online shoppers compare auto insurance prices online. That’s compared to the 90 percent who do the same for all other products and services. What’s the reason? The process of comparing prices for auto coverage premiums is often perceived as being too complicated. Marketers aren’t helping with this either: oftentimes, online comparison shoppers are served ‘bait and switch’ tactics. In other words, the prices they compare on the Internet have little to do with the actual money they end up paying after they make their purchase.
Walmart is promising to only offer real premium prices in real time. Customers can visit any store location or log onto the website to fill out a simple form (using basic info). The data required involves the shopper’s full name, address, date of birth, and contact information. The site also has a database. Customers can access data regarding his or her current car insurance policy. The site will then pull this data and automatically fill in the comparison form. Once the customer compared all the policies he or she is interested in, the shopper can either buy the coverage of choice online or talk to a certified insurance broker on the phone. He or she can also save the information and look it up later.
What kind of insurance can you buy at Walmart?
Through this new service, Walmart customers will exclusively get access to auto insurance offers from AutoInsurance.com. The company, based in Fort Lee, New Jersey, is the sole marketer that Walmart will work with. AutoInsurance will make money out of commissions earned through each car insurance sale from the retail chain. Walmart stands to gain popularity by capitalizing on its already massive network. Many expect the move to generate a surge of customers to stores across the United States.
Walmart insurance shoppers can choose between offers from some of the biggest names in car insurance across the country. The website provides auto coverage quotes from Esurance, Safeco, Progressive, Travelers, 21st Century Insurance, and General Insurance (among others). Shoppers can adjust their coverage options to see how each of them influences the final quote. To boot, they also have the guarantee that the marketer is not affiliated with one single insurance provider. This lack of affiliation makes the comparison relatively unbiased and objective.
Walmart Insurance Covers Texas Drivers but Will This Impact the Car Insurance Texas Market?
Ideally, the emergence of this service will greatly simplify the process of shopping for insurance. What shoppers are gaining access to is an actual ‘apples-to-apples’ comparison service. The service offers them a clearer picture on how much money they will actually spend. Consequently, a person can logically assume that if this service becomes more popular, the number of insured motorists in Texas will rise. Perhaps the most important improvement that the proponents of this new Walmart service are hoping for is an effect on the way insurers provide premium quotes. Hopefully, the existence of a customized, objective, real time comparison service will reduce the use of bait and switch marketing strategies among auto insurance providers in Texas (and the U.S.).