If you watch television, it’s likely you’ve seen the commercials featuring Limu Emu and Doug promoting Liberty Mutual’s car insurance. The listener is told you can “customize your car insurance” by “only buying what you need.”
What Liberty Mutual is doing isn’t unique, but positioning themselves as being able to “customize your car insurance” might be.
I’ve learned some time ago that Geico offers insurance at lower rates than many competitors as they don’t automatically include a provision for allowing someone not expressly listed on the policy to be covered by the standard policy. So, if you allow your best friend to drive you home from the hospital, that driver isn’t covered driving your car. I don’t know if they make this clear. If you are comparing insurance prices with Geico, you may not be comparing apples to oranges if you aren’t aware of the policy restriction.
Liberty Mutual has unbundled or broken out coverage options to allow customers to select what they want. My insurance company, USAA, allows me to customize by picking coverage options and policy limits. They don’t advertise it as “customization” but they do it. I’m sure most insurance companies do.
What’s important to observe is consumers are moving in the direction of “only buy what you need”. It’s what I call the A La Carte Customer®. It’s time to get on board with the A La Carte Customer® business model.
Thought for the week:
“Fundamentally, customers do not want choice; they just want exactly what they want.” ― B. Joseph Pine II, The Experience Economy