Do Celebrity Endorsements Work in the Insurance Industry?

Insurance can be a pretty dry topic to talk about. It's something everyone needs to know about but dreads having to learn the details. The sheer number of insurance companies out there only adds to the confusion. It's an industry known for throwing a lot of terms at the consumer, and not always clear explanations for what makes each company different. 

Enter the celebrity endorsement. These famous people play sports, they star in blockbuster movies, and they also help insurance companies sell their policies for a pretty penny. Some insurance companies go the route of creating a character that sells insurance on TV (think Flo for Progressive). Others focus on athletes (State Farm could build an entire basketball team).

We'll talk about some of the best commercials and ad campaigns that insurance companies have used through the years that take advantage of a celebrity endorsement. For example, what is Discount Double Check? Aaron Rodgers has advertised the term for a decade. Other commercials focus more on generic statements about the price of their insurance.

Shaquille O'Neal for The General

Shaquille O'Neal is one of the most recognizable figures on the planet. The four-time NBA championship-winning center is known for his big frame and his even huger personality. In turn, it feels like he has more endorsements than just about any other retired athlete on the planet.

One of the most recent developments in his portfolio is advertising for The General insurance. This is a company that doesn't have as much authority in the insurance space as giants such as State Farm, Progressive, or GEICO. 

The General is hoping Shaq can help bring some good publicity to their brand, but they don't really teach the audience about any specific policy they have. Their advertising focus is more on the affordability of their product. Combining this with Shaq's screen presence should potentially be a winning combination.

Reviews for The General

Unfortunately, The General has mostly mediocre reviews within the industry. Customers complain the coverage is higher on average than most of the other big brands. The General might claim this is because they offer so many high-risk drivers insurance policies. 

Shaq himself says his loyalty to the brand started when he was young and nobody else would give him coverage. We all know how hard it is for people in their 20s to get affordable insurance. 

It looks like The General's ads aren't doing much to change their reputation at the moment, earning 7.3 stars out of 10 online. This proves how good marketing doesn't always translate to success for some insurance companies.  

Aaron Rodgers and Chris Paul for State Farm

State Farm has employed many athletes to advertise for it across the last several years. Of all of the big names, NFL player Aaron Rodgers and NBA player Chris Paul are the two who seem to have the most staying power. State Farm also has tied many of its famous policies to its celebrity endorsers. 

Aaron Rodgers

Aaron Rodgers originally was known for the discount double-check commercials for the company. The advertisements turned Rodgers' dance into a symbol of their discount double-check campaign. 

This term is the signature name for State Farm's program that checks to see if you are getting every discount possible with the company. The advertising is not only brilliantly engaging, but it also informs customers about something they can do to get better policies. 

Rodgers has continued to advertise for the company in the ensuing years, but no specific ad has ever become quite as famous as this one. It shows how hard it is to combine education with entertainment when informing people about insurance. 

Chris Paul

One of Chris Paul's best commercials with State Farm is a 2018 spot he shares with teammates James Harden and Trevor Ariza. Actor Oscar Nunez also accompanies the Houston Rockets players in the commercial. 

Paul and Nunez are singing along to the Backstreet Boys in their car when they come across Harden and Ariza waiting for roadside assistance from State Farm. The advertisement is engaging while also letting the audience know the company offers something in line with its core values. 

State Farm always says they are there for you like a neighbor should be, and picking you up with roadside assistance is a perfect example of this. 

Tina Fey for Allstate

Many insurance companies now have a device or application that tracks driver behavior, rewarding policyholders with discounts. Allstate's Drivewise program got a celebrity boost from actress Tina Fey in 2019. The company's iconic character, Mayhem, talks to Fey about the discounts up for grabs if drivers sign up for Drivewise. 

This is a great advertisement because it is similar to the State Farm adverts with Chris Paul and Aaron Rodgers. They demonstrate a signature policy of the company while adding a famous person's endorsement makes it even more tempting to look into the policy. It's all about provoking customers' interest in the product. 

Drivewise monitors things like speed and brake time to make sure drivers are using smart and safe driving habits every time they hit the road. Other companies also have driver monitoring devices that can be added to your policy, though, so Allstate should have made it a little more clear what separates their program from the competitors' ones. 

Making Successful Commercials

There's no exact formula to making a successful TV commercial, but there are generic ways companies in a variety of industries try to get a leg up on the competition. All insurance companies can do is focus on giving information about their policies in a way the audience will understand and be entertained by. 

State Farm and Allstate are the big companies compared to The General, and perhaps their marketing is part of the reason for their growth compared. 

Shaq never gives a signature policy for The General, instead going for pure laughs and publicity.  This type of brand recognition strategy is sometimes effective, but it looks like The General may need to explain its products more clearly. 

As the insurance industry continues to grow bigger and more competitive, it will be more important than ever for those using celebrity endorsements to do so wisely. They shouldn't waste money and ad time on cheap chuckles. Educating customers will be the separating factor, and celebrity endorsements will help make this knowledge more entertaining to receive. 

Shawn Laib writes and researches for the car insurance site, CarInsuranceComparison.com. He enjoys showing people how advertisements work to bring in new customers in the insurance industry.