Strategies To Sell Auto Insurance

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 strong sales strategy. Here are some key steps and tips to help you sell auto insurance effectively:

- Get licensed: Check your state's requirements and complete a pre-licensing course in Property and Casualty insurance. Pass the state exam and become appointed with an insurance company.

- Build your resume: Highlight work experience that showcases your entrepreneurial spirit, persuasiveness, and ability to build rapport with customers.

- Find a job: Scan classified ads, network within the industry, and reach out to local agencies.

- Have a side gig: Insurance sales can take time to build a network and generate income, so consider having another source of income initially.

- Dress professionally: Convey seriousness and professionalism by dressing sharp but not slick. Avoid flashy accessories that may come across as dishonest.

- Mirror your clients: Pay attention to your clients' body language, vocabulary, and volume, and adjust your approach accordingly.

- Emphasize value over price: Focus on the value and benefits of the insurance rather than leading with the cost.

- Listen to your customers: Tailor your pitch to their specific needs and concerns by asking questions and actively listening.

- Provide a holistic experience: Educate your customers about the auto industry, economic factors influencing prices, and ways to maximize their coverage.

- Diversify your communication: Use multiple channels such as calls, texts, emails, and online chat to reach and engage with your customers.

- Be available after hours: Work outside of traditional business hours to increase your availability and capture potential customers who are not available during the day.

How to get licensed to sell auto insurance

The process of becoming a licensed insurance agent in California involves several steps, and the requirements vary depending on the type of insurance you want to sell. Here is a detailed guide on how to get licensed to sell auto insurance in California:

Step 1: Decide on the Type of Insurance License You Need

The first step is to determine the type of insurance policies you want to sell. Different types of insurance licenses are available, such as Life, Accident & Health (L&H), Property & Casualty (P&C), and Personal Lines Property & Casualty. If you specifically want to sell auto insurance, you will need the Property & Casualty (P&C) license. This license also enables you to sell home or business insurance.

Step 2: Complete a Pre-Licensing Education Course

The next step is to enrol in and complete a pre-licensing education course. This is a requirement in California, and it will prepare you for the state licensing exam. The pre-licensing course should cover general insurance and ethics training. The total duration of the course will be around 32 hours, including 20 hours focused on general insurance and 12 hours on ethics. You can choose between online courses or classroom settings, depending on your preferences and learning style.

Step 3: Pass the Relevant California Insurance Licensing Exam

After completing your pre-licensing education, you will need to take and pass the California insurance licensing exam. The exam you take will depend on the type of insurance license you are seeking. For the Property & Casualty license, the exam consists of 150 scored questions, and you will have 3 hours and 25 minutes to complete it. A passing score for most licensing exams in California is 60%, except for Adjuster and Bail Examinations, which require a 70% score.

Step 4: Complete a Fingerprint and Background Check

As part of the licensing process, you will need to submit your fingerprints and undergo a background check. This can be done at the California Department of Insurance's (CDI) Los Angeles examination site or at any of PSI's 20 test centres across the state. There is an application fee for this process, which varies depending on the location. The background check will include verifying your identity and checking for any criminal convictions or pending charges.

Step 5: Submit Your Insurance License Application

Once you have passed your exam and completed the fingerprinting, you can submit your insurance license application. You can do this online through Sircon or the National Insurance Producer Registry (NIPR). You may also need to attach additional documents to your electronic application. After submitting your application, the California Department of Insurance will review it, and you can expect to receive your license within three to five weeks if everything is in order.

Step 6: Plan for Continuing Education

To maintain your insurance license in California, you will need to complete continuing education (CE) requirements. These requirements vary depending on the type of license you hold. For example, limited lines automobile insurance agents are required to complete 20 hours of education, including three hours of ethics training, every two years. Make sure to stay updated with any changes to the CE requirements by regularly checking the California Department of Insurance website.

How to sell auto insurance over the phone

Selling auto insurance over the phone can be challenging, but there are several tips you can follow to increase your chances of success. Here are some detailed instructions on how to sell auto insurance over the phone:

Build Rapport with Your Prospects

Before you try to sell insurance to someone, it's important to build a rapport with them. Many people will be suspicious of a random call from an insurance agent, so it's crucial to warm up the call. You can do this by sending an email or physical mail before reaching out, or by simply asking how they're doing and addressing the fact that your call might be unexpected. Building a rapport will make it easier to sell insurance and increase the likelihood of your prospect saying yes when you ask for an appointment or the opportunity to quote.

Cross-Selling and Up-Selling Insurance

One effective strategy is to sell additional insurance products to your current customers. It's usually easier to increase the billings for an existing customer than to sell to a new one. This can involve cross-selling, which means selling an additional insurance product to an existing client, or up-selling, which means selling an increased line of insurance, such as additional vehicle coverage, to an existing customer.

Offer a Free Gift

When a prospect fills out their name and email on your insurance lead generation form, it indicates that they are interested in buying insurance. You can entice prospects to fill out this form by offering a free gift, such as an instant download of an insurance guide or a free insurance report and premium estimate. This will not only help you get more appointments but also increase the perceived value of your offer.

Use Magic Words

When cold-calling prospects, instead of asking if they are available to talk, try using the phrase, "I have a question for you." This gives your prospect the power to control whether the call happens now or not, making them more likely to stay on the line.

Use the Right Sales Tools

To be successful in insurance sales, you need to use the right tools. This includes finding an Agency Management System (AMS) to manage your insurance agency and a Customer Relationship Management (CRM) software to track sales efforts, manage data, and handle communication.

In addition to these strategies, there are several other tips you can follow to improve your phone sales game:

• Prepare in Advance: Have a script and a closing statement ready, and make sure you have everything you need for the call in front of you before picking up the phone.
• Listen and Engage: Pay attention to your prospect's concerns and ask open-ended questions to address them. Avoid using too much jargon, and speak in terms that your prospect can understand.
• Establish Yourself as an Expert: Explain your background, areas of expertise, and credentials to build trust and credibility.
• Show That You're Listening: Use verbal nods like "I see" or "Mhm" to let your prospect know that you're listening and engaged.
• Be Organised: Have all the necessary documents and information readily available during the call to avoid fumbling around. Consider taking notes or even recording the call for reference.
• Handle Objections: Be prepared to address common concerns, such as the cost of insurance or the need to consult with a spouse.
• Follow Up: Don't be discouraged if you don't close a deal on the first call. Many sales require follow-up, so be persistent and don't be afraid to reach out again.

How to sell auto insurance in person

Selling auto insurance can be a rewarding career choice, but it requires persistence and a certain level of entrepreneurial spirit. Here are some steps and tips to help you sell auto insurance in person:

Getting Licensed

Before you can start selling auto insurance, you need to obtain a license. The requirements for obtaining a license vary from state to state, but some common prerequisites include:

• Being over the age of 18.
• Having a high school diploma or GED.
• Completing a pre-licensing course recognised by your state.

Brokerage vs. Agency

When deciding how to sell auto insurance, you have two main options: becoming a broker or an agent. Brokers sell insurance from various insurers, while agents work for a single insurer and sell their products exclusively. Becoming a broker usually requires more experience, and agents often serve as the entry point for those new to insurance sales.

Finding a Job

Once you have your license, you can start looking for a job. Scan classified ads, cold-call local agencies, and network with people connected to the industry. Most insurance companies are always hiring, so finding an opening shouldn't be too difficult. Remember to research the insurer's reputation before applying.

Honing Your Sales Skills

Selling auto insurance requires a specific set of skills. Here are some tips to help you become a successful salesperson:

• Dress professionally: Dress sharp, but not slick. Avoid flashy accessories that may make you seem dishonest.
• Mirror your clients: Pay attention to your clients' body language, vocabulary, and volume, and try to act accordingly without mimicking them.
• Leverage your colleagues' experience: If clients doubt your expertise due to your lack of experience, reassure them by referring to the collective experience of your colleagues and supervisors.
• Sell value, not price: Focus on conveying the value of the insurance policy rather than just the price. Explain why the value outweighs the cost.
• Listen to your customers: Avoid giving canned pitches. Tailor your approach to each customer's unique needs. Ask questions and listen to their concerns.

How to get appointed to sell auto insurance

To get appointed to sell auto insurance, you must first meet the licensing requirements of the state in which you wish to sell insurance. This typically involves completing a pre-licensing course, passing an exam, and undergoing a background check. Once you have obtained your license, you can then contact insurance agencies to become "appointed", which means you are allowed to sell their products.

There are two main types of insurance salespeople: brokers and agents. Brokers sell insurance from any insurer, while agents work for a single insurer and only sell their products. Most states require brokers and agents to take different classes and exams. Brokers typically hire other salespeople to work for them and start their own businesses, while agents work exclusively for one insurer.

When applying for a job in insurance sales, it is important to highlight any relevant work experience, especially jobs that required you to work independently and build rapport with customers. It is also crucial to research the reputation of the insurer you are applying to, as being associated with a company that has a bad reputation can harm your own.

Additionally, it is important to be persistent when selling auto insurance. This career often involves long hours, especially in the beginning, but it can pay off in the form of residuals from long-term clients.

How to sell auto insurance online

Selling auto insurance online can be a rewarding and lucrative career choice. To sell auto insurance online, you will need to obtain a property and casualty insurance license. This generally involves completing a state-approved pre-licensing course that covers relevant insurance principles and state-specific insurance laws, passing your state's licensing exam, and filing an application with your state's Department of Insurance.

Understand the Requirements:

Before starting the process, check your state's requirements for obtaining a property and casualty insurance license. Most states have an age requirement of 18 years or older, and you will need to meet the course-hour requirements and pass an exam. Some states may also require fingerprinting and/or a background check.

Complete a Pre-Licensing Course:

Enroll in a pre-licensing course recognized by your state that covers Property and Casualty insurance, which includes auto insurance. The number of instructional hours varies by state but is typically between 20 to 60 hours. You can take the course in a classroom setting or online.

Pass the Licensing Exam:

Each state administers its own exam, and you will need to meet the minimum requirements. Prepare for the exam by taking practice tests and reviewing the course material. The exam will cover insurance concepts, terms, and state-specific laws and regulations.

Get Appointed by an Insurance Company:

Once you have completed the necessary education and passed the exam, contact insurance agencies to become "appointed," which means you are allowed to sell their products. You can choose to be a captive agent, selling only one company's products, or a broker, selling insurance from multiple companies.

Set Up Your Online Presence:

Build a professional website to showcase your products, provide detailed information about the auto insurance policies you offer, and share valuable resources. Utilize social media platforms to connect with potential clients and establish your online presence. Engage actively by posting informative content, responding to queries, and interacting with your followers.

Implement Digital Marketing Strategies:

Leverage digital marketing tools such as content marketing, pay-per-click (PPC) advertising, and email marketing to reach a wider audience and boost your sales. Create informative blog posts, press releases, articles, or videos to educate your audience about auto insurance. Use strategic keywords and targeted ads to attract potential clients. Send regular newsletters and personalized emails to stay connected with your clients and prospects.

Understand Your Products:

Develop a thorough understanding of the auto insurance policies you are selling, including coverage limits, deductibles, exclusions, and special features. This knowledge will enable you to confidently answer your clients' questions and help them find the best policy for their needs.

Build Trust and Relationships:

Establishing and maintaining relationships with clients is crucial for generating repeat business. Always be honest, transparent, and responsive in your interactions. Show your clients that you are there to support them and provide valuable advice, not just to make a sale.

Continuous Learning:

Stay up-to-date with the auto insurance industry by attending industry training sessions, seminars, and networking events. Continuously improve your skills and adapt your sales strategies to meet the changing needs of your clients.

Remember, selling auto insurance online requires a combination of strategic planning, skillful execution, and a commitment to continuous learning. By following these steps and adapting them to your specific state requirements, you can successfully sell auto insurance online.

Frequently asked questions