You’ve got to hand it to Geico. They take a completely boring product, insurance, and make it interesting.

Of course, they do so by throwing non-sequiturs at you in the form of talking cavemen, flying pigs, musical money stacks, and geckos with accents.

When it comes down to it, they never really say a word about insurance or related coverage options.

Perhaps this is why their commercials are so brilliant. Every other insurance company bores us with policy details that simply put us to sleep, though many are beginning to take Geico’s lead as well.

And Geico certainly has the lead. The insurer spent the most on advertising in 2009 (most recent data available) by a mile, and likely has held onto that lead, if your television is any indication.

The Geico Gecko’s Humble Beginnings

That brings us to Geico’s most lovable TV mascot, the “Geico Gecko.”

The little green critter apparently came about because the name Geico was often mispronounced as “gecko,” and because animals have proven to create a strong relationship between customers and companies. See Spuds MacKenzie for more on that.

So Geico’s advertising company, Martin Agency, started brainstorming and came up with a “quick doodle.”

Interestingly, it came about during the Screen Actor Guild’s strike when human actors were essentially barred from being in commercials.

So a lot of things had to come together to make it a possible.

That doodle proved to be a goldmine for Geico, as it been a prominent part of their ad campaign for about 25 years now.

In fact, it’s still their main mascot, and likely will be for the foreseeable future.

Is the Geico Gecko English or Australian?

The next logical question is where the Geico Gecko is from. After all, Geico has posed the very question in one of its commercials, only to leave viewers wondering.

Well, anyone that knows a good English accent knows it’s definitely not Australian. See Paul Hogan (Crocodile Dundee) for more on that.

It’s definitely an English accent, though it has varied over the years. The voice behind the Geico Gecko was originally performed by English radio presenter David Kelly, and was later handled by English actor Jake Wood of EastEnders fame.

The most recent English accent heard in Geico commercials is a cockney accent, which is a working class accent common in the East End of London, England.

So there you have it. It’s definitely not Australian, and 100% English. For anyone familiar with accents, it’s pretty obvious.

Clearly Geico just decided to make it a cliffhanger in their commercials to get more people to their website with the hope that they would request an insurance quote. Once again, a brilliant idea.

By the way, the Geico Gecko is the most recognized insurance mascot, beating out Flo from Progressive and Mayhem from Allstate.

For the record, the acronym for GEICO is Government Employees Insurance Company. And the company has been around since 1936.

We just couldn’t help ourselves. TTAI doesn’t take its eye off the ball even over the Holidays. Each year many of us make a list of resolutions that likely won’t last through January…the author of this article included. Mostly, our resolutions are about lifestyle changes. Lose weight, eat better, and spend more time with loved ones.

But what about some resolutions that may save hundreds of dollars in insurance premium or thousands of dollars when it comes to insurance claims?

The insurance resolutions below may only take a few minutes to complete, but the benefits may last a lifetime!

Without further ado, here are the top 10 insurance resolutions for 2012 (and every year after).

1. Get Online Quotes – It takes all of five minutes and may save you hundreds of dollars in premiums. You’re already online. Get some insurance quotes and stop wondering if you are overpaying for coverage.

Tip: How to get the best online insurance quote.

2. Ask for Discounts – If you own a television set, you know discounts are all-the-rage, as insurers fight to retain your business.

Tip: You need a new agent if your current agent recommends increasing deductibles or lowering coverage to save money when you inquire about discounts.

3. Bundle Home and Auto – You may earn discounts if you get both your home and auto insurance with the same insurer.

Tip: Don’t settle for just the discount. Shop online and see if you are still paying too much. Every insurer has different rates. Bundling with your current insurer may still be more expensive than switching to another insurer altogether.

4. Consult an Independent Agent – The days of driving to the closest State Farm, Farmers or Allstate agency and paying whatever they ask are over. Independent insurance agents can often get you better coverage at a lower premium.

Tip: The companies independent agents represent don’t spend $500,000,000 of your premium dollars on advertising each year. Chain insurers are the “insurance equivalent” of Bank of America.

5. Get Renters Insurance – Renters insurance is one of the cheapest insurance policies out there…think $200-$400 per year. Just because you rent doesn’t mean you cannot suffer a huge property or liability loss. Can you afford to re-purchase everything in your apartment if it burns down this year?

Tip: Your landlord’s insurance policy does not cover your “stuff.”

6. Review Your Current Coverage – Do you still pay for comprehensive and collision insurance (full coverage) on your 15-year-old car? Do yourself a favor and drop that coverage if your car isn’t worth that much anymore.

Tip: Your auto insurance company will pay you the LESSER of the cost to repair or replace your damaged vehicle or it’s actual cash value at the time of the loss…regardless of how much it means to you personally or how much you pay to insure it.

(Why do insurance companies total cars?)

7. Inventory Your Personal Property – Do you have a list of everything you own? We didn’t think so. You will be required to provide an inventory of your contents in the event your personal property is lost, stolen or damaged and provide it to you insurer. Take video, pictures or write a list and keep it in a safe place. We recommend uploading this list to your email account, where you can access it from any computer on planet Earth that has an Internet connection.

Tip: Do you want to make that list now while you still have your “stuff”…or from a hotel room after your home or apartment has burned down. We’ll bet you a shiny nickel you’ll miss a few things if your home burnt down. Also, you insurer doesn’t just write you a check for your “Contents” limit; you must provide a list to them in the event of a loss.

8. Research Your Current Insurer – We’re not talking reading angry posts on the Internet from individuals who didn’t follow steps 1-7 above. We’re talking court cases here. Many large chain insurers are currently being sued by the states in which they conduct business. The lawsuits range from overcharging for coverage to underestimating your home’s replacement cost (to keep their premiums lower). You have the Internet…use it.

Tip: Google the phrase “lawsuit” and any company who advertises on television every 30 seconds and you’ll see the light.

9. Read Your Policy – Even TTAI knows this isn’t fun. But would you rather find out you didn’t have coverage for a particular loss after it happens or before? While the policy language is mind numbing, you’ll find that asking your agent of insurer for a laymen’s terms explanation of a particular coverage is pretty easy.

Tip: Your agent will not be attentive after a claim if she/he isn’t attentive to your coverage questions prior to a claim. Again, do you want to know what kind of agent you have before or after you file a claim?

10. Stick to Your Resolution – Just like laying off the chocolate or soda, real results come from continued discipline and effort. “Set it and forget it” works for cooking a turkey…not for your insurance. This is one of your top expenses in the budget. Treat it as such.

(photo: John Brennan)

Farmers Insurance recently “saluted” itself in recognition of “University of Farmers,” their frequently advertised insurance school, which took 1st place in Training magazine’s 11th annual Training Top 125 awards program.

This all but forced us here at TTAI to take a closer look into the University of Farmers and give you the skinny on what it’s all about.

Is This a Joke?

The commercials seem to imply this is some sort of a joke (see the “Meatloaf” commercial or the one about the car/boat/house thing).

But nope, there is actually a physical “University” where people can attend classes. We’re unsure if there’s a Greek system though…

So why would Farmers take this approach? Well, many national “chain” insurers have sunk to the level of turning insurance into a joke for the purposes of their advertising.

Our guess is they’re trying to relate to the younger, more internet-savvy consumers, who have begun buying insurance online rather than visiting the old brick-and-mortar shops seen on every street corner in America.

So, the school is real, but what really goes on there? It certainly isn’t an accredited four-year college.

What is University of Farmers?

The University of Farmers, officially dedicated in 2006, is a 120,000 square-foot training facility in Agoura Hill, California.

There are 20 “state-of-the-art” classrooms within the facility in which they train their insurance claims and management staff, as well as their current and prospective agents on the ins and outs of their respective fields.

The claims training facility appears to take up a good bit of space, including a two-story, full-sized mock home and a mock auto bay that can house up to 20 damaged cars.

Similar to other universities nowadays, Farmers also offers thousands of online classes for their employees to complete while residing in other states…in addition to the work they complete at the facility itself.

Why Does Farmers Have a “University?”

For our purposes, we’ll discuss solely the “agent” training afforded by the “University,” as that seems to be the focus of the advertising.

Anyone in their right mind would want insurance professionals to be knowledgeable. But why have a special school…beyond each state’s requirements?

Well, captive insurers, such as Farmers, State Farm and Allstate will make just about anybody an agent, with authorization to sell their insurance products. In fact, it’s not necessary to have a background in the insurance industry to become an agent with many of these insurers.

Sure, you may have to pass a “personality” test, and maybe even prove that you have over 100 “leads” (see friends and family) to become an agent, but they profess to do the rest.

“Have your own business” is how it’s advertised! They’ll teach you how to sell policies to your friends and neighbors…if you aren’t able to meet the sales goals after that point, Grandma’s new Farmers policy is simply transferred to an agent who can “make the grade,” and you’re back to what you were doing before you convinced your 100 “leads” to purchase coverage from Farmers.

Is University of Farmers Necessary?

Not according to the Department of Insurance in any of the 50 states in our great nation.

You must pass a written exam to become a licensed insurance agent in your state, as well as complete continuing education courses every two years to maintain your “licensed” agent status.

And most independent insurance agents, those who represent multiple companies, cannot “earn” the right to sell products on behalf of insurers without proving years of experience and knowledge in the field of insurance.

The story is a little different with captive insurers though…which may explain the presence of the university.

Read more: Job description of an insurance agent.

As individuals, we’re always more in tune with what’s going on in our own neck of the woods.

Have you noticed that when you become interested in purchasing a particular model of car, you tend to see more of them on the road.

This holds true whether you’re looking to buy a 1980 Chevy Malibu or a 2011 Infinity G37. It just tends to be on your “radar.”

Advertisers love this. This concept means they can subliminally fill your brain with their message without coming across as annoying or desperate for you business.

And insurance professionals are all too aware of this. They have to contend with the fact that the largest insurers in the U.S. occupy what seems like 95% of all advertising space. This frequency of advertising tends to hold firm regardless of entertainment medium: television, radio and the internet. There seems to be no escape.

Here’s a challenge for you. Try to count the number of Geico, State Farm, Progressive, Allstate and Farmers Insurance ads you hear or see in one day (let’s throw in 21st Century for good measure). You’ll quickly see what we’re referring to.

That said; let’s take a look at who is spending what to convince us they are better than the next guy.

The Numbers Are In

While Warren Buffet recently detailed in a letter to Berkshire Hathaway shareholders that his company spent nearly $900 million in advertising in 2010, let’s look at the 2009 numbers (the most recent available) published by AM Best to see where the top 10 insurers stood.

Warren Buffet’s Berkshire Hathaway/GEICO came in near the $600 million dollar range, followed closely by State Farm at over $500 million. Rounding out the top three was Allstate Insurance, who appeared to spend slightly less than $500 million dollars.

Progressive at nearly $400 million, Farmers Insurance at around $350 million, and Liberty Mutual at roughly $300 million are no slouches either when it comes to throwing money at the highly competitive insurance market.

The 2010 numbers aren’t out yet, but a gambler would probably bet they’ll be significantly higher across the board, based on Warren Buffet’s shareholder letter.

What Does This Really Mean?

The fact that several billion (with a “B”) advertising dollars were spent by just a few insurance companies reveals that the insurance industry is extremely profitable and competitive.

It may also tell us that the products don’t speak for themselves. You may have noticed a never ending list of famous actors or athletes telling you they love whichever company they are pitching.

The reality is companies like State Farm, GEICO and Farmers Insurance don’t carry products that can adequately insure the people who represent them through advertising.

That alone should make you skeptical of the “not so sincere” pitches of the rich and famous for these insurers.

For example, Lebron James very likely does not insure his home(s) with State Farm. Let’s just leave it at that.

Also ask yourself if you chose Geico (or another top brand) over other similar insurance companies…and paid more, just because it’s on your radar.

Remember, it’s recommended that you compare multiple insurance quotes and shop around with an independent insurance agent to ensure you get the best coverage at the lowest price.

Related: Geico most effective advertiser.

If you own a television, you’re probably well aware that the bulk of commercials plastered in front of your eyeballs have something to do with insurance, namely car insurance.

This has to do with the fact that we’re in a soft insurance market, meaning insurance companies are raking in profits and feel comfortable writing more insurance.

It’s also why insurance companies are able to save drivers so much if they switch, because insurance premiums are low at the moment (15 minutes could save you 15%, Progressive Name Your Price).

All that said, some insurance companies are faring better than others in the ad world, despite the overall frequency.

A recent Lightspeed Research study carried out for Advertising Age found that Progressive’s Flo and the Geico gecko were the most recognized insurance mascots, with nearly all respondents able to match the characters with their associated companies.

The Geico gecko actually took top honors, followed by Flo at a 92% clip – Allstate’s Mayhem was the third most recognizable mascot, though just more than half knew it was an Allstate commercial.

And of the 11 insurance companies included, only four (Allstate, Geico, Progressive, and State Farm) were recognized by at least half of the respondents, which makes you wonder if the ads are merely entertaining folks.

All the money being spent on the ads should also make you think twice about whether you’re actually getting a good deal with the major players.

That said, be sure to shop around for insurance quotes online and also contact an independent insurance agent to ensure you get the most complete coverage at the lowest price.

Related: Top Auto Insurance Companies

(photo: kelsey_lovefusionphoto)

The average American spends a staggering $84,388 on car insurance in their lifetime.

No, that’s not a typo. That’s your bill, according to the latest analysis of car insurance quotes by Insurance.com.

The company arrived at this figure using the assumption that people buy their first car at 21, get married at 27, and then add two teen children to their auto insurance policy between the ages of 46 and 50.

The real rise in insurance rates happens when teen drivers hit the road, as we all know the cost of teen car insurance can be astronomical.

This has to do with how insurance rates are determined, as those with little experience and a tendency to drive erratically pay the price in extra insurance premium.

This figure also takes into account a variety of drivers with all types of insurance claims and driving records.

The good news, I guess, is that you may pay substantially less than this if you are a good driver and force your 2.5 kids to pay for their own insurance (like I did, thanks to McDonalds and various pizza delivery companies).

But to ensure you pay less than $80,000, try using an independent insurance agent, who can obtain insurance quotes from multiple companies all at once.

And be sure to ask about every available discount, such as the good driver discount, the good student discount, and even the hybrid car insurance discount!

Related: How can I lower my car insurance rate?

Bigger is better, right?

Many of us choose to buy insurance from the largest insurers because it gives us piece of mind.

The more money our insurance company has, the better the odds they’ll be able to pay our insurance claims if anything goes wrong.

This line of thinking isn’t necessarily wrong, but it should be no surprise that insurance companies, in general, are typically financially sound.

Admitted insurers financials, those licensed to conduct business in any particular state by individual state departments of insurance, are heavily scrutinized to ensure they remain solvent.

It is very difficult to operate an insurance company in a manner that might lead to an inability to pay claims…although it has happened from time to time.

Furthermore, large insurers are not free from financial woes.

Does anyone remember AIG’s financial problems in 2008? They were one of the largest American insurance companies out there…and almost lost it all.

World’s Largest Insurance Companies

That said; AM Best (insurance company ratings) recently released their list of the world’s largest insurers in 2009 (the most recent data available), ranked by assets.

These rankings do not evaluate the insurers by the number of policies they have in-force or by customer satisfaction rankings.

Let’s look at a few of the highlights of the list.

Topping the list is a Japanese company, Japan Post Insurance Co Ltd, with $1,095,621,460,000 in assets. Yes, you are reading that correctly…Japan Post has over one trillion dollars in assets.

Believe it or not, that total is actually down 5.28 percent from the previous year. Still not too shabby.

A French company, Axa SA, snagged the second spot with slightly less than one trillion dollars in assets.

Their 2009 balance sheet revealed a 5.69 percent increase from 2008, with $962,833,608,000 in assets.

American International Group, Inc (AIG) was the largest U.S insurance company, and the third largest in the world.

Looks like the government bailout helped them stay alive with $847,585,000,000 in assets on their books.

Rounding out the top five were MetLife, Inc and Prudential Financial, Inc, the only other two insurers from the United States to make it into the top ten, with $539,314,000,000 and $480,203,000,000, in assets, respectively.

A total of five U.S. insurers made the top 25 largest insurers in the world, including Hartford Financial Services Group, Inc and Warren Buffet’s Berkshire Hathaway (which includes GEICO).

It would be great if the sticker price were the only consideration when making a decision to buy that new car you’ve been eyeballing.

But with the economy still barely sputtering along and unemployment holding steady, or increasing, depending on who you talk to, most of us need to consider the overall cost of car ownership when deciding which ride to take home with us.

One of the main drawbacks to car ownership is the cost to insure our vehicles.

While the liability portion of auto insurance is determined mostly by our choice of limits, age, sex, and driving record, the physical damage portion of the policy is mostly determined by the expected cost to repair damage to the vehicle.

Simply put, the more your car is worth, the more expensive it is to fix if damaged, and the more expensive it is to insure. Period.

Remember, if you lease or have a loan on a vehicle, your lender, or loss payee, will require you to have full coverage (liability and physical damage) in order to protect their financial interest.

Tip: You may want to consider purchasing gap coverage on a newer vehicle if you owe more than the car is currently worth.

So let’s take a look at the top 10 cars cheapest cars to own (with car insurance included), based on a recent survey from Car and Driver:

10. Hyundai Elantra
Insurance: $3,527
Total ownership: $21,586

9. Kia Forte Sedan
Insurance: $3835
Total ownership: $21,533

8. Suzuki SX4 Sedan
Insurance: $3,563
Total ownership: $21,487

7. Kia Soul
Insurance: $3,760
Total Ownership: $21,063

6. Toyota Yaris Three-Door Hatchback
Insurance: $3,597
Total ownership: $19,847

5. Kia Rio Sedan
Insurance: $4,000
Total ownership: $19,378

4. Chevy Aveo Sedan
Insurance: $3,536
Total ownership: $19,309

3. Smart Fortwo Coupe
Insurance: $3,279
Total ownership: $18,487

2. Hyundai Accent three-Door Hatchback
Insurance: $4,351
Total ownership: $18,029

1. Nissan Versa 1.6 Base
Insurance: $3602
Total ownership: $17,506

Car and Driver rolled in the cost of car insurance over three years assuming the driver was a 28-year-old single male with no tickets, living in the same area as its Ann Arbor offices.

You may notice the insurance costs do not necessarily correlate directly with the cost of the vehicle or the total ownership cost. Some vehicles may be more expensive to repair or may be inherently more dangerous to drive.

Get insurance quotes online or contact your local independent insurance agent to ensure you get the coverage you need at lowest possible insurance premium.

Read more: How can I lower my car insurance rate?

(photo: paulhoule)

A widely publicized 2007 car accident involving Hulk Hogan’s son, Nick Hogan, left his passenger in a coma.

As a result, “The Hulkster,” whose real name is Terry Bollea, had to pay out an undisclosed amount of money in damages to the family of the injured passenger.

You may recall that Nick was not yet an adult, which made elder Hogan technically responsible for his son’s actions.

In the event of an at-fault accident, bodily injury caused to another individual is covered under your limits of liability.

Liability limits can be expressed as split limits or as a combined single limit. The limits dictate the maximum amount of money your insurance company will pay for damages awarded in any one covered accident.

The at-fault individual (or the parent or legal guardian in the case of a minor) is responsible for paying any awarded damages above the policy limits.

As it turns out, similar to his son’s apparent lack of taking responsibility for the accident, Hogan is looking to point the finger in another direction to recoup the money he was ordered to pay to the family of the injured passenger.

Why is Hogan Suing His Insurance Agent?

Insurance agents must carry errors and omissions insurance, a type of professional liability insurance similar to malpractice insurance for doctors.

An insurance agent technically has a duty to evaluate all potential insurance needs for their clients and make recommendations for coverage.

And often times, an insured must accept or reject coverage as part of their application.

This is a major reason why agents should make it a habit to keep written records of their client’s refusal to purchase the “recommended coverage. “

According to the Independent Insurance Agents of Texas’ Personal Lines Report, Hogan sued his insurance agent for failure to offer an umbrella insurance policy.

An umbrella policy has extremely high liability limits ($1,000,000 and up) and protects an insured from liability judgments in excess of underlying liability insurance policies, in this case his auto liability policy.

It is not necessary for every individual to have an umbrella policy, though high net-worth individuals should almost always have one in place (how much car insurance do I need).

The same report said Hogan sued his attorney for “failing to sufficiently protect his personal interests,” but that case was dismissed.

So it looks like this is a last ditch effort by Hogan to push responsibility onto someone else and protect his remaining assets.

The lesson here is that insurance agents and their insured need to take as much time as necessary to share information and assess all potential exposure to risk.

Many insurance agents are dissatisfied with their insured’s lack of concern or effort when it comes to discussing their wants, needs and exposures…that is, until an insurance claim is started.

So take the time to fully understand all of your insurance needs prior to signing on the dotted line.

It is recommended that you obtain insurance quotes online or speak to a local independent agent to get the proper insurance coverage you need at the right price.

The popular Apple iPhone comes with one year of hardware repair coverage via its limited warranty, but what happens if the device is damaged as the result of an accident, or worse yet, stolen?

Unfortunately, Apple and sole wireless carrier AT&T don’t offer any form of “iPhone insurance,” despite the device going for a pretty penny.

However, there are other options if you want iPhone insurance coverage, though they may not make much sense for you.

1. If you have a homeowner’s insurance or renter’s insurance policy, your phone is already covered as “personal property,” under the policy provisions. For the record, so is everything else you own and may carry with you.

Here’s the catch: You likely have a deductible on your policy, and the odds are the deductible is at least $500. So, while you are “covered,” you will have to file an insurance claim and pay $500 to get your $500 phone replaced. Oh yeah, and your policy premium may go up as a result of filing the claim. Your C.L.U.E. report would show the claim for between 3 and 5 years.

Recommended: If you lose or damage the phone, don’t file a claim, just pay for it out of your pocket. If you don’t have that type of money, consider buying a cheaper phone.

2. Your iPhone may be covered as “data processing equipment,” similar to a computer, depending on the language of your homeowner’s policy. This might mean it is subject to a different, or even no deductible, if it is lost or damaged.

Here’s the catch: While this may seem like a win for you, you will likely have to argue with your insurance company, and the “loss” may still show up on your C.L.U.E. report, which may raise your insurance rate for a few years.

Recommended: The same as above. If you can’t afford the potential cost of replacement or repair of the device, you may want to consider a less costly purchase next time.

3. You may be able to purchase a personal articles floater. This is a type of marine (goods in transit) coverage that is specially designed for high cost items that do not stay in a fixed location, usually reserved for jewelry.

Good News: There is typically no deductible on this coverage type, and it is usually an “open perils” policy, which means your insurer will pay for any cause of loss unless it is specifically excluded in the policy language.

4. Your iPhone will NEVER be covered by your car insurance policy. If you leave the phone in the car and it’s stolen, you’re out of luck.

Good News: The phone would still be covered by a homeowner’s or renter’s policy if you have one.

Bad News: The loss would still be subject to a deductible, which may meet or exceed the cost of the phone.

5. Finally, there are companies out there that offer iPhone insurance for accidents and failures, but they charge quite a bit and may also be subject to a deductible.

I have heard of some companies, such as State Farm, offering coverage specifically for iPhones, for roughly $40 per year. Some policies don’t even carry a deductible.

Being an insurance professional, I am not sure how long that will last, as it leaves them susceptible to paying a lot of claims for damaged phones. It may simply be a way to get a potential insured in the door as a means to sell other, more profitable lines of insurance.

So at the end of the day, the best advice is to treat your iPhone like the tiny handheld computer it is and take very good care of it.