Junk mail from Auto Insurance Marketers

How auto insurance agencies use mails to market their products

Since the beginning we have been receiving “Junk mail” sent by the insurance companies. The auto insurance industry called it direct mail and much of that direct mail ends up in the trash before it was even open.

More about auto insurance Junk mail

In 2007, Direct Marketing Association (DMA) says the insurance companies spent over $6.81 billion in advertising through the mail. Also, the cost of advertising through mail is expected to increase by 7.6% each year to 2012.

Why are they, the insurance companies spending all of this money? The Direct Marketing Association reported that the insurance companies get back about $8.15 dollars for every dollar they spend through their junk mail. If Gieko spend $1 million dollars in their direct mail, then they are expecting to get back about $8 150 000 million dollars in revenue for their work.

Auto insurance direct marketers

Many of this direct mail comes from the auto insurance companies. Come to think about it, the auto insurance companies sent out the most direct mail when compared to any other type of insurance.

So what are their sale pitches?

The usual pitches used by the auto insurance companies through their direct mails are the prices. For example, GEICO direct mail will always try to convey the savings more than anything else. Their slogan, “15 minutes can save you 15% on your car insurance”.

Recently Allstate been sending out direct mail saying “Your enclose instant access savings card can be worth hundreds of dollars.” that was on the front of the envelope. When opened, there was a mockup credit card with a 1-800 number for you to call to activate. Next to that card is a sentence in a big bold letter, “Average annual savings $353.00”

Regardless of the popularity of the internet, direct mailing is still alive and doing well for the auto insurance industry. As long as there is an 8-1 in return of revenue for their effort on direct mail advertising. You can expect to see direct mail for many more years to come.

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