Travelers Insurance Uses Scare Tactics in Misleading Ad; Texas Watch Calls for State Investigation
Texas Watch—July 7th, 2010
Travelers Insurance is currently running a misleading and deceptive television ad in Texas that is meant to scare homeowners into believing they could lose their home if they do not have sufficient auto insurance to cover their liability in an auto accident. Texas Watch has requested an investigation by Attorney General Greg Abbott and Insurance Commissioner Mike Geeslin.
“This ad is deceptive and misleading,” said Alex Winslow, Texas Watch’s Executive Director. “During our nation’s current economic crisis, it is shameful that an insurance company would prey on the fears of families who are already concerned about being able to make their mortgage payments just to sell more overpriced insurance.”
The ad entitled Driving Your House includes a voice-over message that says: “Without the right auto insurance, a crash might impact more than your car. Make sure you’re properly covered, so when you’re driving your car, you’re not risking your house.”
The Texas Constitution (Article 16, Section 50) strictly prohibits the forced sale of a person’s homestead except in narrow circumstances, clearly protecting homeowners from just the type of situation outlined in the Travelers television ad.
Texas Watch has sent a letter to Attorney General Greg Abbott and Insurance Commissioner Mike Geeslin requesting an investigation into possible violations of the Deceptive Trade Practices Act and the state Insurance Code.
In 2005, Allstate was forced to stop airing a similar ad after Texas Watch alerted state officials. Attorney General Abbott’s office issued a “cease and desist” letter to Allstate insurance writing that Allstate’s ad contained “false, misleading and deceptive statements.” Texas Watch believes the same is true for the current Travelers Insurance commercial.
“A Texas homeowner would never be forced to sell his home because he didn’t have enough auto insurance. Travelers should be ashamed,” said Winslow. “This ad is nothing more than a scare tactic.”
Resources:
- Texas Watch Letter to AG Greg Abbott and Insurance Commissioner Mike Geeslin (July 6, 2010)
- OAG Cease & Desist Letter to Allstate Insurance (Sept. 1, 2005)
- Texas Constitution Article 16, Section 50
###
For More Information: Alex Winslow (512-381-1111)
