Selling Auto Insurance: Strategies For Success

Auto insurance is the most common type of insurance policy sold, as every state requires drivers to have insurance. Selling auto insurance can be a rewarding and lucrative career, but it requires persistence and a great deal of initiative. Before you can start selling, you must obtain a property and casualty insurance license, which is state-specific and requires passing an exam. You can sell auto insurance as a broker or an agent, with brokers selling insurance from any insurer and agents working for and selling the products of a single insurer.

To sell auto insurance, you need to focus on connecting with your customers and providing a positive, holistic experience. You should also invest in technology to streamline communication and be available outside of typical business hours to increase your chances of engaging with potential customers.

Be persistent

Persistence is the most important quality in an insurance salesperson. There are a lot of long hours, especially in the beginning, but they pay off in the form of residuals (ongoing commission payments) from your long-term clients.

Selling insurance is a numbers game. The more people you talk to, the more opportunities you will have for business. It is more important to be persistent than to have excellent sales skills. A persistent agent with average sales skills will be more successful than a charismatic salesperson who is lazy. As an insurance salesperson, your purpose in life is hitting your activity goals every day. Accomplishing activity goals daily is the first step to hitting your long-term monthly and annual income goals.

Selling insurance can be a rollercoaster of emotions. You will have to deal with rejection and adversity, but you must persist. The agents who have the wherewithal, patience, and resources to ride out the unproductive stretches are the ones who will be successful.

Count on seriously considering quitting selling insurance at some point in your career, especially in the early years. Many people second-guess their insurance career when things aren't going smoothly, but success in insurance sales comes down to having faith in the system and faith in yourself.

Persistence is key. If you can survive the early years of struggle, you may find yourself reaping the rewards later.

Dress sharp, but not slick

When selling auto insurance, it is important to dress professionally. First impressions are important, and dressing professionally will ensure you are treated as such. However, it is also important not to overdress, as this may make you seem slick or dishonest.

Dressing sharp means wearing clean, well-fitting clothes. It does not mean you have to wear a suit every day, but rather that your clothing should be free from tears, rips, and stains. It is also important to be aware of your personal style and to learn from classic styles. You want to stand out, but not because your outfit is too flashy.

For example, when choosing accessories, opt for subtle tie pins and avoid bright colours and excessive jewellery. The goal is to convey seriousness, not to be the centre of attention. Remember, people are often suspicious of salespeople, so it is important not to do anything that might heighten that perception.

In addition to your choice of clothing, it is also important to be mindful of your body language, vocabulary, and volume when interacting with clients. Be aware of your client's personal space and comfort level with different communication styles. Mirroring your client's body language and communication style can help you build rapport and make them feel more comfortable.

By dressing sharp and adopting a professional demeanour, you will convey maturity, self-respect, and self-confidence, all of which are important qualities when selling auto insurance.

Mirror your clients

Mirroring your clients is a key aspect of selling auto insurance. While you don't want to adopt any fake accents or blatantly copy a client's mannerisms, it is important to be aware of and reflect their body language, vocabulary, and volume. This technique helps to build rapport and create a comfortable environment for your clients to express their concerns and needs.

For instance, if your client speaks quietly, they may feel uncomfortable around loud and boisterous individuals. Similarly, customers who prefer simple and direct sentences may be turned off by long-winded and flowery speech. By mirroring their communication style, you can make them feel at ease and understood.

Additionally, be mindful of your client's personal space. Some people prefer to maintain a larger bubble of personal space and may feel uncomfortable if you stand or sit too close. Adjust your distance accordingly to match their comfort level.

It's important to note that mirroring is not about mimicking your customers but about creating a harmonious interaction. Be subtle in your approach, and avoid any obvious copying of their mannerisms. Instead, focus on creating a comfortable and non-confrontational atmosphere that puts your clients at ease and allows them to open up about their insurance needs.

Another aspect of mirroring is understanding your client's preferences and habits. Ask open-ended questions to learn more about their hobbies, family situation, and investment properties. This information can help you tailor your insurance offerings to their specific needs. For example, if they enjoy boating, you can suggest boat insurance. Or, if they have children, you can bring up the benefits of life insurance. By mirroring your client's interests and concerns, you can provide a more personalized and appealing insurance package.

In conclusion, mirroring your clients is a powerful tool for building trust and rapport in the auto insurance sales process. By paying attention to their body language, communication style, and personal space, you can create a comfortable environment that puts your clients at ease. Additionally, understanding their hobbies, family dynamics, and investments allows you to offer tailored insurance solutions. Remember, successful mirroring is about subtlety and creating harmony, not blatant imitation.

Lean on your co-workers' experience

As a new insurance agent, you may come across customers who doubt your abilities because of your lack of experience. You can address these concerns by referring to your colleagues' experience. Remember, your supervisors are responsible for your mistakes, so they will want to avoid them.

You could say something like: "I know I've only been doing this for a year, but my colleagues have decades of experience between them. They review everything I do to make sure there are no errors. When you work with me, you're not just working with me, but with all of us."

This approach will help to build trust with potential customers and show them that they are in safe hands. It's also a good idea to establish your credibility and expertise when selling insurance. Explain your background, areas of expertise, and credentials to the customer. This is especially important when selling life insurance, as it's a big decision for the customer.

Additionally, when selling insurance over the phone, it's crucial to build rapport with the prospect. Always smile when you're on a call, as it will come across in your voice, making you sound friendly and welcoming. Ask how their day is going to break the ice and humanise your approach.

Sell value, not price

When selling auto insurance, it's important to remember that people buy a product because they believe its value outweighs its cost. While many customers will start off a conversation by talking about price, that's because they have more information about price than quality. It's your job to show them why price is secondary to the value you provide.

• Talk about claims: Explain the claims process and how your agency helps guide customers through it. Use specific examples of how your process has helped previous clients. This will get people thinking beyond price.
• Ask why they bought their car: When you find out what kind of car the prospect owns, ask them why they chose it. They'll rarely say it was because it was the cheapest. This will remind them that they don't make every purchasing decision based on price alone.
• Ask about their worst accident: Asking prospects about the worst car accident they've witnessed can be a powerful way to shift their focus from price to the value of insurance.
• Ask about communication preferences: Understand how your prospect likes to communicate (phone, email, face-to-face, etc.) and frame the benefits of your agency around that. Let them know that you'll communicate with them in a way that fits their life.
• Educate your prospects: Most people don't fully understand how insurance works. If you can explain it to them in a way that's easy to understand, you'll be providing a lot of value. They'll feel more confident in the decisions you're guiding them to make.
• Explain the discounts: When you identify discounts your prospect qualifies for, take the time to explain how much money each discount saves and why they qualify. People love discounts, and this will build trust that you're getting them all the discounts they're entitled to.
• Talk about your experience: If you've been in insurance for a while, find ways to convey this to your prospects. If you're new, you can reference the combined experience of your coworkers. This will help establish credibility and trust.
• Explain that having an agent doesn't raise the price: Many people assume buying through an agent is more expensive. Explain that agents are field underwriters who allow carriers to provide more accurate rates for every risk. A good agent who understands rating criteria and discounts can help clients get the cheapest price.
• Ask about their last claim experience: Ask a follow-up question about their previous insurance claim experience. If they had a bad experience, your claims handling processes might offer clear advantages. Even if they had a good experience, forcing your prospect to mentally relive the claim experience will pull them away from a "price-only" mindset.
• Ask about the potential cost of not buying: Compare the money someone could save by not buying your insurance policy with the potential cost of not having it. For example, "If you don't buy this life insurance policy, you'll save $25 a month. But what's the potential cost of being diagnosed with cancer after making that decision?".
• Listen to your customers: Tailor your approach to their needs. Ask them questions, and then only answer the questions they ask you. This will help you provide a more personalised and valuable service.

Frequently asked questions