Prospecting Auto Insurance: Strategies For Success

Auto insurance prospecting is the process of actively finding and identifying people who fit consumer profiles that align with the type of clients an agency is trying to target. There are several strategies that can be employed to prospect for auto insurance, such as cross-selling existing products, generating referrals from existing customers, and understanding which products are competitively priced. Obtaining rate quotes from multiple insurers is also important, as rates can vary significantly, and it is crucial to ensure that the insurer is licensed to sell insurance in the relevant state. When shopping for auto insurance, it is essential to consider various coverage options, choose an appropriate deductible, and compare premium quotes to find the best policy that satisfies all your needs at the best rate.

Compare quotes from different companies

Comparing quotes from different companies is a crucial step in prospecting for auto insurance. Here are some detailed instructions to help you through the process:

Understand the Factors Affecting Your Premium

Before you start comparing quotes, it's important to know the factors that influence your auto insurance premium. These include your driving record, age, credit history, vehicle type, and location, among others. Knowing these factors will help you understand why different companies offer varying rates and make more informed decisions when choosing a policy.

Decide on the Coverage You Need

Most states have minimum coverage requirements, so be sure to familiarise yourself with the laws in your state. Additionally, consider your specific needs. For example, if you have a newer or leased vehicle, you may need comprehensive and collision coverage. Think about optional coverages, such as uninsured/underinsured motorist protection, medical payments coverage, or personal injury protection.

Gather the Necessary Information

To get accurate quotes, you'll need to provide some basic information. This includes personal details such as your age, gender, marital status, and driving history. You'll also need information about the vehicle(s) you want to insure, including the make, model, year, and vehicle identification number (VIN). Have this information readily available to streamline the quote process.

Research and Compare Quotes from Multiple Insurers

Obtain quotes from several insurers to find the best value for your needs. You can contact agents, brokers, or individual insurance companies directly. Alternatively, use online insurance comparison sites or quoting agents that provide sample rates from multiple insurers. Remember to compare quotes for the same types and levels of coverage to ensure accuracy.

Consider the Company's Reputation and Customer Service

In addition to the quoted price, research the insurance company's reputation, customer service, claims handling process, and overall customer satisfaction. Check reviews and ratings from independent sources to gauge their reliability and responsiveness when it comes to handling claims.

Look for Available Discounts

Many insurance companies offer discounts, so be sure to inquire about them. Common discounts include those for bundling policies, having a clean driving record, paying your premium in full, or being a student with good grades. By taking advantage of applicable discounts, you may be able to lower your premium significantly.

Re-evaluate Your Options Periodically

Don't forget to re-evaluate your insurance options periodically, especially if your life circumstances change. For example, if you move to a new state, get married, or add a new driver to your policy, it's a good idea to compare quotes again to ensure you're still getting the best value and coverage for your needs.

Understand your coverage options

Understanding the different types of auto insurance coverage can help you find the right policy for your needs and budget. Here's a detailed rundown of the coverage options available to you:

Liability Coverages

Liability coverages are required in most states and provide financial protection if you cause an accident that results in injuries or damage to someone else's property. The specific types of liability coverages include:

• Bodily Injury Liability: This covers costs associated with injuries or death caused by you or another driver operating your car. It pays for the medical expenses and, in some cases, legal expenses of the other driver or their passengers.
• Property Damage Liability: This coverage reimburses others for damage caused by you or another driver operating your car to their vehicle or other property, such as a fence, building, or utility pole.

Medical Payments or Personal Injury Protection (PIP)

Medical Payments coverage or Personal Injury Protection (PIP) provides reimbursement for medical expenses for injuries to you or your passengers. It may also cover lost wages and other related expenses. This type of coverage is required in some states.

Uninsured and Underinsured Motorist Coverage

Uninsured Motorist Coverage reimburses you when an accident is caused by a driver without insurance or in the case of a hit-and-run. Underinsured Motorist Coverage, on the other hand, protects you from at-fault drivers who don't have sufficient insurance to pay for the costs of a serious accident. While these coverages may be optional in some states, it is highly recommended to add them to your policy for greater financial protection.

Collision Coverage

Collision coverage is optional and reimburses you for damage to your car that occurs as a result of a collision with another vehicle or object, such as a tree or guardrail. It does not cover mechanical failure or normal wear and tear but will cover damage from potholes or if your car rolls over.

Comprehensive Coverage

Comprehensive coverage is also optional and provides protection against theft and damage caused by incidents other than a collision. This includes fire, flood, vandalism, hail, falling objects, and other hazards. Like collision coverage, comprehensive coverage only covers the market value of your car, not what you originally paid for it.

Glass Coverage

Windshield damage is common, and glass coverage can be a valuable addition to your policy. Some auto policies include no-deductible glass coverage, which covers the windshield, side windows, rear windows, and glass sunroofs. You can also purchase supplemental glass coverage if needed.

Other Optional Coverages

In addition to the coverages mentioned above, there are several other optional coverages you can consider, depending on your specific needs:

• Emergency Road Service
• Rental Reimbursement
• Mechanical Breakdown Insurance
• Gap Insurance: If you lease or finance your vehicle, you may want to consider gap insurance. This covers the "gap" between what you owe on your vehicle and its market value if it is totaled or stolen.

When deciding on the coverage options that are right for you, it's important to consider your state's minimum requirements, your budget, and your specific needs. You may also want to consult with an insurance agent or broker to get personalized advice and recommendations.

Choose your deductible

Choosing your deductible is one of the most important things to consider when comparing auto coverage. A high-deductible car insurance policy brings different financial consequences than a policy with a low deductible.

The deductible is the amount you pay out of pocket before your insurance carrier starts paying for repairs. You will have to pay the deductible each time you file a claim. For example, if you have a $3,000 repair and a $1,000 auto insurance deductible, you would be responsible for paying $1,000. After paying the deductible, the insurance company would pay the remaining $2,000. However, if the repair costs less than the deductible, you will have to pay the entire bill.

Most drivers choose a $500 auto insurance deductible, but policies with higher deductibles cost less. A low deductible means a higher insurance rate, whereas a high deductible means a lower insurance rate.

There is a straightforward relationship between your insurance deductible and the rate you pay for your policy. Plans with lower deductibles usually have higher monthly premiums and vice versa. But if you choose a plan with a higher deductible to get a lower insurance rate, you’ll pay more out of pocket if you file a claim.

When selecting a deductible, it is important to consider how likely it is that you will need to file an insurance claim. If you have a history of speeding tickets, prior at-fault accidents, drive in a high-risk area, or drive frequently for leisure or work, you are more likely to be stuck with a large bill.

In addition, you should evaluate your cash savings. If you do not have savings or an emergency fund to cover a high deductible, it may be better to choose a low-deductible policy. The higher monthly bills for insurance premiums may be a better way to protect your finances if you have an accident.

Finally, consider your tolerance for risk. Choosing a high-deductible plan is a gamble that you won’t have a car accident. If you do have an accident with a high-deductible policy, you’re still covered, but you’ll pay more out of pocket after the accident than if you had a low-deductible policy.

Compare premium quotes

Comparing premium quotes is a crucial step in prospecting for auto insurance. Here are some detailed and instructive tips to help you compare premium quotes effectively:

Determine Your Budget:

Start by figuring out how much you can afford to spend on auto insurance. The average U.S. driver pays $135 per month, so that can be a good starting point for your budget. Knowing your budget will help you quickly narrow down the options and focus on insurers that fit within your financial constraints.

Gather Relevant Information:

Before comparing quotes, ensure you have the necessary information readily available. This includes your Social Security number, driver's license number, Vehicle Identification Number (VIN), and details of your current insurance coverage. Having this information on hand will streamline the quote comparison process.

Utilize Insurance Comparison Websites:

Insurance comparison websites, such as Compare.com, Insurify, and The Zebra, offer a convenient way to compare quotes from multiple insurers at once. These sites allow you to input your information once and then provide side-by-side comparisons of different insurers' rates and coverage options. However, be cautious of lead-generation websites that sell your personal information. Stick to reputable comparison sites that partner directly with insurance companies.

Research Companies with Competitive Quotes:

Don't solely focus on the price; research the companies with competitive quotes to ensure they are reputable and provide quality service. Check third-party websites like J.D. Power and AM Best for customer feedback, claims satisfaction, financial strength, and overall customer experience. This research will help you make an informed decision about which insurer offers the best combination of price and service.

Compare Quotes Regularly:

Don't just compare quotes when you initially purchase auto insurance. It's essential to periodically review your coverage and compare quotes from different insurers. Insurance rates can change over time, and you may find better deals or more suitable coverage options by comparing quotes every six months or at renewal time.

Understand Coverage Options:

When comparing quotes, pay close attention to the coverage options included in each quote. Standard coverage options include liability coverage, collision coverage, and comprehensive coverage. Additionally, consider optional coverages like uninsured/underinsured motorist coverage, medical payments coverage, personal injury protection, and gap insurance. Choose the coverage options that best fit your needs and preferences.

Consider Other Factors:

Price is important, but it's not the only factor to consider when comparing auto insurance quotes. Evaluate the insurance company's customer service, claims handling process, and overall reputation. You want an insurer that provides excellent customer support and handles claims efficiently and fairly. Check reviews and ratings from independent sources to gauge each insurer's performance in these areas.

By following these tips, you'll be able to compare premium quotes effectively and make a well-informed decision when choosing your auto insurance provider. Remember to review your insurance needs and the market offerings periodically to ensure you're getting the best value and coverage for your circumstances.

Understand insurance prospecting in the sales process

Understanding insurance prospecting in the sales process is key to your success in the insurance business. Prospecting is a vital part of your day-to-day work, as 92% of customer interactions happen over the phone. It is about actively finding and identifying people who fit the consumer profiles that align with the type of clients your agency is targeting.

There are different strategies for insurance sales prospecting, depending on the type of agent you are. The aim is to drive more top-funnel activity and more contacts, which will lead to more quotes and more binds.

Firstly, you need to understand the sales process and how prospecting fits into it. In your first year, there are often required phone sessions, or "phone clinics", where the team makes calls to set up appointments. After the first year, these phone clinics usually stop, but the need to prospect remains. It is important to make dedicated call times throughout the week a top priority and treat them with the same importance as an in-person client appointment.

When you are prospecting, it is a good idea to have a script, especially when you are new to the role. This will give you confidence and ensure you don't mess up. Using a script also means you can control the conversation and lead the prospect towards becoming a customer. However, it is important not to sound too scripted—you should adapt the script to your personality and comfort level.

There are several other tips for successful insurance prospecting. These include focusing each dialling session on a particular audience and adapting your approach, making the first call of the day an easy one, and being willing to phone prospects at any time. It is also important to learn from leaders in the company and utilise processes and templates to save time and bring in more activity.

Frequently asked questions