The logic behind TV ads for auto insurance

Every time I watch a TV ad for an auto insurance company, I question why they are so disconnected from the products they are selling, So, I went online and found the following AI Overview that summed up the situation.

• Boring Subject Matter: Insurance is an inherently dull and stressful topic about accidents, damage, and death. To keep people from tuning out, brands use loud sketches, cartoons, and absurdity.
• No Real Product Difference: Car and home insurance policies are mostly commodities with very little actual price or feature difference between major brands. Companies cannot explain complex policy details in a 30-second spot, so they focus purely on name recognition—wanting their jingle or mascot to be the first thing you remember when it is time to buy.
• The "Shotgun" Audience Approach: Because almost every adult is legally required to carry auto or health insurance, companies target a massive, universal demographic. They throw out dozens of weird comedy concepts hoping at least one sticks with someone.
• High Customer Value: Because the average person keeps the same auto insurer for 12 years (and 14% stay for over 20 years), a single new customer generates thousands of dollars in long-term revenue. This huge profit margin funds a relentless "arms race" of ads.
• Massive Advertising Budgets: Major companies like Geico, Progressive, Allstate, and State Farm each spend over a billion dollars a year on television ads.

The freeze frame in this post is from a GEICO TV ad. GEICO, headquartered in Bethesda, MD, stands for Government Employees Insurance Company.