We’ve all seen them – the ubiquitous insurance commercials featuring Flo, Aaron Rodgers, the GEICO gecko or some other memorable character. They seem to pop up every second or third commercial and are usually purchased for the most high profile events, like nationally televised football games. But the interesting thing about these commercials is that they only seem to ever to tell you to buy two types of insurance, homeowners or auto. What about renters insurance?
It turns out that the reasoning behind the lack of renters insurance messaging has less to do with the importance of the product and more to do with the premium that insurance companies receive for each type of insurance. GEICO, the largest insurance advertiser, spent a whopping $1.18 billion on advertising in 2013 according to SNL Financial. If GEICO is spending that much, you can be sure that they are going to steer people to the products that will pay them back in kind. And which products are most rewarding for the GEICOs of the world? Homeowners and auto insurance.
So, even though renters insurance provides the same protection as homeowners, GEICO and State Farm won’t tell you to buy it because it just doesn’t cost enough. The result of all of this is that young people have little awareness about the importance of renters insurance and fail to protect themselves as a result.
If Flo really cared about you, she’d tell you to buy renters insurance.