Google is expanding again into ventures that seem completely unrelated to what Google was once all about: search engines. Now, they have started a comparison website for car insurance, specific to California. Clearly, Google is moving above and beyond providing link information once again. It is believed that the goal of this project is to have yet another stream of advertising revenue.
Google focuses on 14 different insurance carriers. They are not offering the insurance services themselves. Rather, they will take information from users, such as what type of vehicle they have and how old it is, as well as personal information such as their employment and marital status and their gender. This information will then be used to display quotes. Effectively, Google is doing what many other websites have already been doing for years, yet they believe that they will still stand out from the crowd with their specific service.
Researching for car insurance can be time consuming. We’re working with a growing number of insurance providers to aggregate their questions into a single form.
Google is working together with a number of different insurance companies, including The General Automobile Insurance, which is a daughter company of American Family, and MetLife. Additionally, they have partnered with CoverHound, which is a different website that compares insurance, to offer quotes from companies like 21st Century Insurance and Infinity Insurance.
The chief executive of CoverHound, Keith Moore, is hopeful that by this time next year, the service will be nationwide. It seems that Google has indeed obtained licenses already in order to sell insurance in the District of Columbia and a further 48 states.
Google hopes to offer the service nationwide by next year. Google appears to have obtained licenses to sell insurance in 48 states and the District of Columbia, according to its website.
Apparently, they are taking it one step further as well. The service is likely to also include homeowner insurance in the future. This is according to an anonymous industry official who claims to be holding talks with Google about these issues. Interestingly, Google has not been available for any comments on their new insurance venture, although all details are still available on their website.
The venture is nothing truly new, as Google has been offering car insurance in the United Kingdom for some time now, having focused on the European market first.
51% of consumers could save up to 218.07 with Google Compare. 80% of consumers could save up to 71.91 with Google Compare. Based on Online independent research by Consumer Intelligence during 01 December 2014 to 31 December 2014. Our service is free to you, but we are compensated by the providers on our panel.
Google Compare Car Insurance in the UK works with as many as 126 different insurance providers and they have been hugely successful so far.
Google has been focusing on offering various price comparison tools for a while now, and the California car insurance comparison is just the latest effort to remake search results. When someone searches for insurance information, Google will provide highly detailed results. This includes such things are prices for the policies, but also insurance reviews. Furthermore, it will link back to the various retailers that offer the insurance. Google has already been hugely successful with this in their flight and hotel comparison sites. Searchers only need to enter the dates they are interested in and they will receive price quotations.
Google is encouraging searchers to provide as much information as possible to receive an accurate quotation. It is hoped that the exact intent of the searcher will be made more clear that way. This also means that any advertisements provided by Google will be more likely to be valuable.
At the moment, however, the largest car insurance companies, which include State Farm, Progressive and Allstate ALL, are not taking part in the new Google service. This is because they already spend a huge amount of money on marketing. Additionally, the chief operating officer of TheZebra, which is another insurance search site, believes Google has got their approach wrong.
Many of the major carriers are very resistant to participate on the Google Compare platform. Based off what they’ve built in the U.K., carriers see this as a price-only comparison…and they don’t want to be compared only on the price.
Indeed, Glenn Rennwick, chief executive of Progressive, made a statement during the company’s earning conference last week. Here, he stated that, as a company, it was more preferable for a customer to come directly to them, rather than being directed there through Google. According to the chief executive of Allstate ALL, Tom Wilson, there is no need for the company to join in the latest Google effort either. This is because they already run Answer Financial, which is their very own price comparison website. This website currently generates a yearly $500 million for a variety of other companies, so signing over to Google seems like a bad idea. State Farm also made comments on the new Google efforts, making it very clear that they will not join in on the project. State Farm is already part of a multi-platform marketing plan that is hugely successful. They did not want to elaborate further on the details of this, due to competitive reasons.
So is Google taking things a step too far? Probably not. At present, they already offer a credit card comparison website that is very successful. The comparison site in Google also works really well, mainly because so many consumers are seeing savings with it. This despite the fact that the UK already have numerous other very successful comparison websites that were in place long before Google. It is also believed that the company is planning to move into mortgage comparison as well. Google is confident that the other states will soon follow suit, which is why they already hold licenses for those areas. Whether it will be successful remains to be seen, but Google very rarely really fails.