The car insurance market is extremely competitive. Every driver needs car insurance, and there are a lot of companies that offer coverage to these drivers. Because of this competition there are many challenges to selling car insurance, but there are some tips that can help you be more successful on getting the sale.
Connect with Potential Clients
Many people turn to the internet to get car insurance quotes and information so the whole process can seem very informal. There are a lot of people who never talk to a local agent, let alone meet them in person. One thing that can help you stand out as a local agent is to connect with your potential clients. While there are a lot of people who go the technology route, there are still plenty who like to do business with people they trust.
With such a competitive car insurance landscape, it’s important that you come across as someone who cares about all of your potential clients. Work hard for them with their best interest in mind, but also connect with them on a personal level. Have conversations about who they are and what they’re really looking for in car insurance. This will help you cater the car insurance product specifically to their needs and desires.
Know the State Laws
Every state has different laws when it comes to car insurance. Some states require all drivers to carry no-fault collision coverage while others don’t. The nuances of car insurance on a state-by-state basis can be difficult to understand — for both the insurance agent and drivers.
If you’re selling car insurance, it’s very important that you know the ins and outs of the insurance laws for each state where you’re licensed to sell. The last thing you want to do is lead customers the wrong way simply because you weren’t educated or up to date with the state’s laws.
At the same time, knowing the state’s laws in and out will help you look more professional to potential customers. You can actually help them save money by knowing state laws, and making suggestions for coverage based on what they need.
Partner with Local Businesses
Networking is a great way to make connections. One of the best ways to do this is to partner with other local businesses in related industries. For instance, you could partner with a car dealership. When people buy new or used cars from that dealership, the person who sells them the vehicle would refer them to you for their insurance needs. You could establish similar relationships with electronics dealers who sell car parts or stereo equipment, or real estate agents who sell people new homes.
These relationships should be mutually beneficial to them, too. Either offer them a percentage for each new sale you make through their referral, or offer a referral to their business in exchange.
Set a Healthy Budget for Marketing
If you don’t want to get lost in the crowd of car insurance agents, it’s important that you’re constantly marketing yourself and your products. Today, that means taking to multiple mediums — from digital channels to more traditional print advertising.
If you want to succeed selling car insurance today, people are going to have to know your name and trust what you’re selling. To do this, you’re going to need to set aside a healthy budget dedicated to a well-thought-out marketing plan. Some of this marketing budget could go toward direct advertising campaigns, content marketing, or creating an attractive website and social media pages. This will of course take money, but it will be worth it if you do it right.
Offer Comprehensive Packages
An easy way to increase your success as an agent is to sell comprehensive car insurance policies, as well as other types of insurance. The Insurance Information Institute says that 78% of drivers purchase comprehensive car insurance packages, which include liability insurance. If you don’t sell this type of insurance, or aren’t familiar with it, then your potential customers could choose to go with another agent or another company, resulting in lost revenue.
In addition, many people who buy car insurance also have other insurance needs. If you’re able to offer them other products such as life insurance and home insurance, to name a few, then you could expand your potential customer base. These bundled insurance products can end up saving customers a lot of money. Bundling your insurance can also result in selling more expensive insurance packages which helps boost your bottom line in the process.
Contact us today to learn how we can help you establish and grow your insurance business!