Google Launches Auto Insurance Comparison Tool

In important news for the auto industry, Google has announced the launch of Google Compare for Auto Insurance, as the search giant enters the lead generation game. With this new tool, Google delivers up to 14 sponsored listings from insurers with rate quote information. As the program expands, it’s likely that the number of listings will increase.

The program is initially launching in California, and will roll out to more states in the coming period with additional features including ratings and reviews, as well as local agent support for insurance companies with agent networks. In this initiative, Google will act as the lead generator rather than mere ad facilitator with pricing based on a flexible cost-per-acquisition (CPA) model. However, the company explains that payment isn’t a factor in whether or not an advertiser is eligible for inclusion in a result or where it ranks.

“Whether you’re a national insurance provider or one local to California, people searching for car insurance on their phone or computer can find you along with an apples-to-apples comparison of other providers – all in as little as 5 minutes,” wrote Google in its description of the new tool. “You can highlight what makes your business unique, whether that’s an ‘A’ rating in customer service or better discounts for safe drivers. And when users adjust their deductible or add additional cars to their quote, you can show updated pricing that matches their needs.”

Users are able to buy policies either online or by calling an agent from their phones. The initial advertisers include MetLife and Mercury Insurance.

In its blog post, Google shared some quotes from its partners about this new tool. “We’re always looking for opportunities to use new technology to enhance the customer experience,” said Kishore Ponnavolu, Executive Vice President at MetLife Auto & Home. “Partnering with Google Compare allows us to bring our unique group pricing and benefits to a wider range of customers, while creating an easier shopping experience.”

In the United Kingdom, Google has run a similar program since 2012, and it has been anticipated for a long time that it would come to the United States. Specifically, in January, a Forrester analyst correctly predicted that this California launch would happen this quarter.

Auto insurance is one of several verticals in which Google has entered, including flights, hotels and shopping. The company first tested rate quotes with a short-lived program called Google Advisors in 2011, which featured comparison shopping for mortgage lenders, credit card providers and banks. The only component of that program that remains today is Google Compare for Credit Cards. As with the credit card comparison listings, Google Compare for Auto Insurance won’t compete among advertisers in the AdWords auction.