Allstate has done a great job with their Mayhem commercials, they are humorous and evoke fear of the coverages offered by other companies.
However, they are playing to the ignorance of the mass populace about insurance covereages in general. Their mention of “cut rate” policies refer to stripped down, liability only policies that don’t include physical damage or other covereages.
This has nothing to do with the type of policy other companies offer, rather it’s the type of coverage you’ve chosen to carry. If you don’t understand your own coverages, or don’t understand what a joke the mayhem gimmick is, you need a new agent that will sit down and explain what exactly it is you’re paying all that money for.
You can’t believe everything you see on tv.