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Attention Walmart Shoppers: Agents Are a Better Choice for Auto Insurance

As soon as Walmart announced that it would promote auto insurance to its customers, PIA issued a press release advising consumers that it is better to deal with a Professional Insurance Agent...
May 7, 2014

As soon as Walmart announced that it would promote auto insurance to its customers, PIA issued a press release advising consumers that it is better to deal with a Professional Insurance Agent.

PIA expressed skepticism regarding a claim by Walmart that customers in a pilot of the program experienced average savings of more than $1,100 a year on auto insurance purchased through an online service promoted in its stores.

“As an average saving, that figure sounds unrealistic,” said PIA National Executive Vice President & CEO Mike Becker. “Walmart says that the system it is using compares rates on an existing policy with rates on policies with the same coverage. If that is the case, we are skeptical that the average price difference for the same level of coverage can be that large.”

Walmart said it was “bringing one-stop shopping to the insurance industry.” PIA’s press release pointed out that consumers can already shop for auto insurance in one stop – by consulting a Main Street professional insurance agent who can offer advice along with choices of coverage and price from among many carriers.

What It Means to Agents: Competition will always be a feature of the insurance business, as it is in every business. If agents focus solely on price, they will shortchange their strong competitive advantages: expert advice, a broad range of choices and personal relationships with clients.

Attention Walmart Shoppers: Agents Are a Better Choice for Auto Insurance (PIA 5/1/14)

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