Wal-mart Now Rolling Back Prices on Auto Insurance

EAST STROUDSBURG — Wal-mart is known for rolling back prices on paper towels, pet food and home décor. Now the retail giant announced is getting into the business of rolling back prices on auto insurance policies.

We found Lyndsey Mitchelson filling up near Wal-mart in East Stroudsburg.

“It’s pretty surprising to me, I mean, yeah, they’re a big grocery vendor and they’re kind of the big name out here, but to find out they’re branching out that far is kind of weird to me,” said Mitchelson.

Wal-mart says it’s partnering with autoinsurance.com to give Wal-mart shoppers a new quick and easy way to save money. The site will allow customers to get competing quotes from several car insurance providers.

Annie Cole of Stroudsburg says she already has insurance for her Lincoln and has no plans to shop around for new quotes.

“Does it interest you enough that you would look into it yourself?”

“No. no,” said Cole.

Policies can only be purchased online. Wal-mart will have ads in stores and links of its website directing people to its partner autoinsurance.com.

But some local agents say buying your car insurance through the same store you get your food, clothes and more just isn’t a good fit for drivers.

“I really don’t believe that’s the place to shop for your insurance. I don’t think you can take it off the hanger and it will fit you,” said RBLA of PA General Insurance President John Martone.

Martone sells insurance right on Main Street in Stroudsburg and says he always tells his clients about different options for liability and coverage. He says that buying car insurance based solely on price could lead to trouble down the road.

“Like you’re ordering Chinese food, you tell them what you want and they’re going in and they’re not counseling the insured on what they should have,” said Martone.

But Mitchelson says the low prices may be the wave of the future for young drivers looking for a deal.

“I feel like going online would be the right thing, because even though I don’t have someone to help me through it that’s how most of what I do is done right now is online,” said Mitchelson.

5 comments

  • Maryanne

    In order to use this coverage the person must
    pay their deductible. Collision insurance is required
    by lenders before they will issue a loan on a car.
    Focus on the license plates, insurance information, telephone numbers and of course, name
    of the person who was driving the other vehicle.

  • coffee

    Some people feel comfortable purchasing many products without the help of an agent. Stocks and mutual funds, a house, life insurance, airplane tickets to name a few. Others feel the need to be guided by an agent. By cutting out a middleman there are potential risks and rewards, to each his own!

  • Kate Hause

    There is a lot more to it than price. Taking low coverage for a cheaper price can lead to higher rates in the long run. Insurance companies do not only base your rates off your credit they base them off of; how long you have been with your prior carrier, your current limit of liability, education, homeownership etc. Purchasing something “cheap” now will probably add to more long term expense.

    You like doing your business online, google insurance and your zip code and email an agent in your town who will actually help guide you not just put your down as another sale.

  • Franko

    What a crock – autoinsurance.com works with some of the most expensive companies in the business — Progressive, 21st Century, and Esurance — They are outrageous… I’ve tried them and got quotes for at least 3 times more than i am paying now, because they use your credit score against you. As for The General and Safeco, if you do your research or even ask an insurance agent from a major company, you will discover that those two are not even real insurance companies the are licensed differently.

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