What Are You Looking for the Most?

[terickson5]

Hi there,

I am currently an independent insurance agent selling auto and home; I am also doing a PR project for my Master's.

What is the buyer looking for the most in a car insurance company?

Price? Savings? Coverage? Benefits? Financial Stability?

 

[djs]

Well, if you sell it, then you probably know the answer......

Its not a one size fits all and in most cases, its a balance.

The way I see it is:

Price: 25%
Savings: not sure what you mean, this is same as price
Coverage: 20%
Benefits: 10% I assume you mean towing, rental car coverage, etc
Financial stability: 15% I would equate this to more brand awareness though.
Sales/Support process: 15% (most people put these together on insurance and they want to work the way they want to work, either online or in person)
Claims handling: 15% This is higher for people who have had a recent claim, lower if they never had a claim.

Now, your thesis can be explaining how to tweak these levers within the sales process and recognize what is important to any particular prospect, because, like snowflakes, they are all different. Heck, even the husband and wife usually have different 'percentages' inside of their concerns.

Then realize that in the P&C world, at every contact with the client, it is knowing these levers, what is important to the client and keeping it sold.

Dan

 

[kfander]

Speaking for myself ...

Price: 30%
Coverage: 10%
Benefits: 10%
Stability: 5%
Support: 20%
Claims: 25%

I am 62. My wife and I each have a car. Most of our driving is in Maine, but we do put a lot of miles on in Maine, plus an occasional trip outside of Maine, but usually in New England.

 

[INSUREGEEK]

I currently run a collision repair facility, and I can tell you this:

Older drivers are very loyal to their agents and value relationships and coverage over price. Many of them have had no accidents in 10-20 years. They value this because they learned to value it the hard way....they come in with $200 deductibles but are leery of filing a claim because they might get nonrenewed or have a rate increase.

Anyone old enough to be off their parents' policy, but not yet learned those lessons will value price above all else. They're paying off $100k+ in student loans and working $50K jobs while married with kids and living in a house they can barely afford. They are dumbfounded when they realize they have that $1000 deductible, and their call to 1-800-sell-me-a-bs-policy didn't mention rental car coverage or discuss limits.

Yes - I use extremes to make a point. It is mostly true though, in the real world.

Know your audience. Sell to their needs and requirements. Never sacrifice yourself to an E&O over a coverage that costs less than a daily Starbucks.

 

[ReliableInsurance]

If they are low income then just savings. High income wants it all

 

[briko3]

One of the most important things I've learned in this business is to never be afraid of showing a client the true cost of doing business.

 

[Allstate_8802]

With a greater understanding of the claim and indemnification process, I believe most insured's will ultimately value coverage over cost. Not every loss is a total loss, but having deductibles which work in their favor and ample options available (discounts for safe driving, deductible rewards, etc) are the foundations of a loyal client. So, coverage and the option for better coverage is my answer.

If everyone was required to obtain insurance through the same carrier, where rates did not vary for the same sort of policy, having slightly higher coverage would by far outweigh the small increase in premium they paid over the course of six months / one year.

I was once hit by a driver with no insurance, before starting in the insurance field. I was younger and had simple state minimums, and my major brand carrier had not included UMPD on my policy. $3k worth of damage. I blamed myself, initially, but now that I do what I do, and know what I know, I question why I was not encouraged to carry the extremely cheap coverage in the first place?

People who carry insurance to satisfy the law, cannot or do not appreciate complete coverage. When you need your insurance most, better coverage always makes more sense than a better price (value).