Walmart, the nation’s largest retailer, is now selling car insurance? The question is, will it really save you money? Walmart says that their reasoning for this move is because the Walmart shopper is among the Americans who are getting pummeled when it comes to their auto insurance rates.
The offer for this insurance is currently only available in Tennessee, Pennsylvania, Oklahoma, Mississippi, Missouri, Texas, Louisiana and Arkansas. Nevertheless, it is expected that they will reach the other 42 states soon. Walmart is already making claims that they can save the average individual $1,100 per year by shopping through them; whether the company will actually do that has yet to be seen. Walmart made the claim that their business is driven by a desire to take things that are normally expensive and making them simple and cost efficient. Daniel Eckert, the senior vice president of Walmart, continued by saying that Walmart’s customers have to settle for insurance policies that are not a good match for them, and they have to settle for prices that are more than they can afford to spend.
In addition to this move into auto insurance, Walmart is testing life insurance in South Carolina and Georgia. This move into the financial arena could be due to their overall decline in the shopping industry. They have seen their sales plummet for more than five consecutive quarters, and the number of shoppers has been declining for more than six consecutive quarters.
Walmart has partnered up with Autoinsurance.com; they say that they want to make 90 percent of people do comparison shopping online, and they want to make insurance simpler and faster for everyone looking to save. The company allows people to buy their policies from one location. It is said the average consumer spends about 10 percent of their income on vehicle insurance. Walmart is looking to change that.