Google Compare for Auto Insurance (“Google Compare”), the comparison tool for auto coverage introduced to the market in March, announced that it is adding several new features to its site, including user assessments of insurance companies and support for contacting a local agent.
While the service has only been unveiled in a handful of states so far, the tech giant hopes to soon begin offering additional benefits to consumers beyond rate appraisals and price comparisons.
One such item will allow potential clients to view other drivers’ ratings of each insurance provider, similar to popular review sites Angies List or Yelp.
“To provide drivers with more, relevant information as they compare, we’re introducing ratings for each insurer,” Stephanie Cuthbertson, Google Compare’s group product manager, said at the annual AdWords Performance Summit in Half Moon Bay, California. “With a tap of your finger, you can drill in to see ratings for things like customer service, claims satisfaction, and whether other users recommend the insurer.”
In addition, since extensive research suggests that consumers typically use the Internet as a launching point to speak with an agent or broker in further detail, Google Compare will also boast access to local insurance professionals who can assist with the application or renewal process.
“Now when comparing insurers, you’ll have the ability to buy online or call a local agent to get help with your policy,” Cuthbertson said. “This includes support for insurers’ own agent networks, and independent agents.”
Cuthbertson did not share details on what this might mean, but the ability to work with comparison tools like Google’s is a big win for agents.
Compare.com CEO Andrew Rose, who has partnered with Google Compare, told Insurance Business that online comparison tools benefit agents and will be key to their survival in a market increasingly dominated by automation.
“Our model is something that gives agents considerations where they wouldn’t have it otherwise,” Rose said. “We have a shot in competing against GEICO and other big advertisers. You may have to sacrifice a bit of commission up front to get your skin in the game, but it will allow you to take the personal relationships you offer and put it out on the multi-product market.”
GEICO, and what he calls the other members of the “big four” insurance advertisers, are actually where Rose believes threats to agents lay. Along with Allstate, State Farm and Progressive, GEICO would “consume market share” simply by virtue of their well-funded ad campaigns.
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“They receive a disproportionate amount of consideration,” he said. “The market share change could be dramatic if sites like ours didn’t exist.”
Some skeptics worry that the tech company may have an ulterior motive for Google Compare, such as obtaining detailed information from drivers, which can then be used to advance its own insurance initiatives.
“If you think about what’s going on with self-driving cars in the future, Google is really going to have to understand how insurance companies price risk because the whole model is going to change,” Forrester analyst Ellen Carney told TechCrunch. “And I imagine that some component of insurance is going to be included with the car.”
The site also announced that it is planning to incorporate a mortgage component to Google Compare.
