GEICO and Helzberg Diamonds: A Match Made In…

File this one under, “Starting to Get Ridiculous.” By now, you’ve likely seen at least one of the Geico and Helzberg collaborations come across your television screen, especially during the Christmas season.

While we review a lot of auto insurer advertisements to make sure our TTAI faithful get the scoop about the actual products being offered, this post is a little different.

There is really no product information to dissect here. We all know Geico can save us 15% in 15 minutes and they’re not really trying to push a new product here. Like most of their commercials, this one does not have a direct connection with insurance. (For more information, read our “Will 15 minutes really save me 15 percent on insurance?“)

Geico now wants us to “feel good” when we hear their name or see their branding anywhere. Yes, they’ll mention insurance and how much you could save. But their intent is to get their name ingrained in your mind. So whether you’re thinking about insurance or valuables like jewelry that may benefit from insurance, you’ll think of Geico Insurance Agency.

What is interesting about the Helzberg Geico Collaboration?

Co-op advertising has been around for a long time, so this is nothing new. In fact, Progressive Insurance did some co-op stuff a little while back. And how many times has Jerry Seinfeld offered a Snapple to guests in his apartment?

The need to do co-op can signal a weakness in the larger of the two advertiser’s finances. Don’t get us wrong, Geico is part of Berkshire Hathaway (see Warren Buffett). So they are one of the largest and richest insurers on Planet Earth. It can also represent a simple marketing effort to continuously grow their business when they’ve reached the natural limits of more conventional advertising methods. Essentially, Geico wants to be in your mind before you officially start your search for insurance.

We’ll spare you the details of a 20,000 word essay on insurance pricing and just point out that Geico is not the type of company that typically needs to lower their advertising costs. In fact, they spend more money than anyone else on advertising according to the most recent information available.

Why partner with Helzberg Diamonds?

At the end of the day, Geico Insurance Agency has super cheap insurance premiums and insure millions of people. They often undercut other insurers in all price ranges. That said, they have been largely limited to customers who are just looking for the cheapest prices.

While this is a substantial market, it limits their profitability on individual policies. More importantly, it undercuts the other things that may draw customers to a company like Geico Insurance Agency. While they do have a highly rated claims process and you’ll likely get a friendly customer service agent if you call, many people overlook all that. They assume that with such a cheap price, Geico insurance agency might not be able to cover more expensive items (like jewelry) or that they may not pay out as reliably on their claims.

None of this is true, but even licensed specialists may make this error in thinking. Partnering with a jewelry company could change the way the common consumer sees Geico insurance agency and what they’re willing to get quotes on. For example, a consumer might be more interested in getting a quote on a boat insurance policy or an umbrella policy increasing profitability and reducing per policy advertising costs.

What does the future look like for Geico Insurance Agency and Helzberg diamonds?

Get used to it. Insurers are like dominoes. If one falls, they all follow suit.

If you consider sharing your multi-billion dollar Gecko’s spotlight with a jeweler as a “fall,” let it be said that you will soon see other insurers going this route.

Perhaps this is what the Mayans were referring to. We’re not sure.

Let’s just agree on this; if you see a State Farm commercial where they share the spotlight with Coca Cola, buy a gas generator and gold bars. The end is near! Oh and by the way, diamond rings need to be insured too, so the profit is never-ending in this equation.

Read more: The Progressive Box steals Flo’s spotlight.