Google May Be on the Verge of Selling Auto Insurance in the U.S.

There has been much speculation of late surrounding Google and whether the online giant will soon be entering the U.S. auto insurance market to sell policies online. The tech giant is expected to facilitate insurance sales from existing insurers, in a role similar to that of an insurance agent, rather than becoming an actual insurance company.

Google has been offering online auto insurance in the United Kingdom for the past two years via Google Compare (google.co.uk), which also enables users to comparison shop for credit card offers, travel insurance and mortgages, according to an Insurance Journal article on January 9.

The signs have certainly been pointing in that direction, the article said.

1. A post in the New York Times technology blog ‘Bits’ reported that Google entered a partnership with CompareNow.com, a site which compares auto insurance quotes from fully licensed insurance providers. On-site users, who fill out one simple form, can then buy a policy online, by phone or through a local agent.
2. Another indication recently came from Forrester Research analyst Ellen Carney who said in her blog that Google’s online auto insurance shopper—Google Compare Auto Insurance Services Inc.—has been licensed to sell insurance in at least 26 states with authorized carriers including Dairyland, MetLife, Mercury, Permanent General Assurance, Viking Insurance, and Workmen’s.
3. Carney reported that Google may also be working with CoverHound, a site that provides online quotes for numerous insurance companies including Hartford, esurance, 21st Century, Travelers, Safeco, National General, Progressive, Foremost, Plymouth Rock, and more.

She also believes a launch could happen later this quarter, starting in California, and rolling out to Illinois, Pennsylvania and Texas, even though the pilot program has supposedly been delayed before.

Despite results from a survey by TransUnion last year that found online shopping for auto insurance rates declined about 3 percent in the 12 months ending February 2014 compared to a year earlier, industry analysts believe that Google could still make a dent in the market.

Global research by Accenture found that 67 percent of insurance customers said they would consider buying insurance products from organizations other than the insurers themselves.  In addition, 23 percent indicated that they would consider buying from online service providers such as Google and Amazon.

Google Inc. does own GoogleCompare.com; however, the site is not operational, according to Insurance Journal.  The publication also received no response from Google as expected. The tech company has previously told Reuters and the Wall Street Journal that it does not comment on speculation.