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Because they make more money that way.
In order to stop them, you'd need a large percentage of customers go out of their way to purchase policies from companies with the lowest advertising budgets.
This was basically my grandfather's modus operandi. He wouldn't buy anything he saw in an ad. Dude was a nuclear physicist, so maybe he was on to something.
And while it'd be pretty hard to do that today, I always try and keep it in mind when I buy stuff. I ask myself if I feel like I'm being pressured to buy something, and to try to always be willing to walk away without buying. You can always decide later, and buy it then.
Let's not go attributing success in one area as relevant to being smart in another, unrelated area, even when they're right. I prefer the other guy who worked in the industry agreeing rather than a nuclear physicist. Unless nuclear physicists typically get their degree by researching the insurance industry and their quality in relationship to advertisement budgets.