Agentco Vs Smart Choice in NC- My Final 2 Candidates

[NCAgent]

So I've gotten myself down to these 2 clusters to use for P&C. I've talked with a smart choice rep and with agentco and will be trying to get an appointment set up with both with the final details.

How do people like them and which would they choose? Smartchoice you keep the book but once you have the appointment through them you cannot go anywhere else for the appointment for 2 years. 30% isn't much until you realize that every year for the rest of the career you are paying up to 15k of your own commissions for a carrier you can soon get on your own.

Agentco I haven't heard as much about. I hear they take 20% out for each year you have them but when you get to the point to get direct appointments with a carrier you can get it; the cost is just one more year of paying that 20% commission and then you're free of them for that appointment but can keep others. However, there is no cap like smart choice so you might end up paying more than 15k a year to them. You also have to pay fees to start up (like less than 1k I think).

The natural choice sounds to be agentco for starting up a new agency but they aren't nearly as famous around these parts as other clusters and it makes me wonder why. Both places allow direct writing and keeping a book of business.

Does anyone have any input on who to use? I've ruled out other places due to lower commissions and lack of book control, or ridiculous starting fees or monthly fees like SIAA and Iroquous Group.

Any thoughts would be appreciated!

 

[Bertolinoins]

Project your agency 3-5-10 years down the line and see which company is going to allow you to be the most successful. The larger your book... the more important the caps are. The reason siaa and others are expensive on a monthly basis because you get a higher commission and overrides that can easily cover those monthly fees.

 

[NCAgent]

I project 3-5-10 years down the line of having my own direct appointments. Not paying 15k a year and being stuck with someone forever. But I agree, I'm re-evaluating SIAA for that reason. Iroquois group I'm sticking away from since there is a 2 year noncompete with direct appointments.

Thanks for the help though with that, I think I just stayed away from SIAA because this is a poor man's lovechild between independence and business ideas. Not many funds to back this up from the beginning so I was more willing to give up some commissions (since I'm making money) rather than money I can't stand to lose from the small starting pool.

Any other suggestions?

 

[djs]

How much experience do you have?
An alternative to joining any cluster is to get appointments with some non-standard auto (pretty easy) and then use something like SAIS (Superior Access) for the more preferred business till you get some legs under you.

This will let you grow a small book to make sure its a model you want to work before spending the bigger dollars to get involved in a cluster. Any cluster will lock you in one way or another.

Going the nonstandard route won't be easy, but its a lot less money to get up and running. Its also a pretty easy business to work in some volume till you get all of the networking and marketing in place to write standard business.

If you are not familiar with it, non-standard tends to be auto insurance for those with 'impaired' licenses. You can do well by working with a series of used-car dealers to give you referrals, but you need to be 'Johnny on the spot' when they call. You will tend to have decent rates for this market.

It can also refer to homeowners where the home is not well maintained, vacant, older, etc. These are usually higher premiums, don't come up as much, but are well worth writing when they do.

This method is no where near as good as being direct with preferred carriers in the long run, but, its a much easier startup.

Dan

 

[HealthGuy]

Dan: Besides Progressive - who are the other non standard carriers you can get direct appointments with starting out if you are a P and C newbie?

 

[djs]

Always depends on the state, but...
Explorer
SCJ Insurance Services
Bristol West (oops, Foremost), in some states
Align General
Many, many more....

Talk to whatever company sells the premier rater in your state. They know exactly who is appointing newer agents. In California, its FSCRater, other states, I have no idea.

You'll still need P&C E&O coverage, the monthly rater dues, etc. It's not a cheap way to go if you are just starting out and don't have an aggressive marketing plan.

Dan

 

[Guest]

SIAA is the only way to go, think long term. I make much more in bonuses than the cost to join.

 

[NCAgent]

Would you mind giving a few commission rates for some of your top carriers?

I will definitely try the non-standard auto route, that could actually work. So would this be for things like people with bad credit, DUIs, multiple tickets or accidents, and things of that nature?

I actually wanted to try SR-22 insurance just because I live in a town with 3 colleges and I'm pretty damn sure at least one student has gotten a DUI in the last 2-3 years

Besides auto dealers (especially buy-here-pay-here places) what is another good place to target people who have less than perfect underwriting requirements that can make them non-standard?

Also, just because it is probably relevant, NC has guaranteed issue auto insurance. You just get put into a higher risk pool on the back end and pay more for auto insurance but the auto company services you and everything. It's the reinsurance facility. Therefore, non-standard works only in that people know they pay more for auto insurance, but will NEVER be declined coverage. The coverages may be limited, however.

I'll try to get SIAA on board then, either them or my meeting with Agentco I'll have sometime this week. I'll compare them and see what to do.

What is necessary to get a non-standard auto to appoint you really? Especially for people with a new business?

To be honest, if I could just get like, Travelers as a preferred carrier I would probably be okay. I'm pretty sure I can get Progressive as well once I get someone there to actually F&*K&NG call me back

 

[infoe]

just call the siaa master agency, they will tell you. (after you sign a non disclosure agreement)

 

[djs]

I would say that going the non-standard auto route is workable, but it will burn you out pretty quick. It's okay to start, but you need to have a more balanced approach going forward.

I would highly recommend using something like SIAA to get started if you can. To be honest, in my area, they aren't exactly bending over backwards to take on new agents either. They are primarily looking for agents with books or ex-captives.

Good luck!!!

Dan