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Google Eyes Auto Insurance Sales

Google appears to be taking steps to sell auto insurance in several U.S. states...
January 16, 2015

Google appears to be taking steps to sell auto insurance in several U.S. states. Forrester Research's Ellen Carney says a business called Google Compare Auto Insurance Services obtained licenses to sell insurance in 26 states. Carney reports that Goggle has been working on the project for more than two years and could finally launch later this quarter in California, followed by Illinois, Pennsylvania and Texas.

While an entry of Google into auto insurance marketing could increase competition, there is no guarantee that such an effort would be successful. Similar efforts by retailers have been attempted. Last May, the TransUnion Auto Insurance Shopping Index reported that shopping over the internet for auto insurance is down for the second year in a row.

"We are finding that despite billions of dollars being spent on advertising each year, the percentage of consumers shopping for auto insurance has been dropping for approximately the last two years," said Mark McElroy, executive vice president of TransUnion's insurance business unit, commenting in Insurance Journal. "This places additional pressure on insurance carriers as their pool of potential customers declines."

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