State Minimum Coverage

rwilkes

New Member
1
I am a new independent insurance agent in Georgia and notice that the captive companies are beating me on State minimum auto quotes, 25/50 (even on multi policy discounts if they add a rental policy) but that when the liability Coverage goes up, then the independent companies do much better.

I have tried Progressive and Mercury and am losing. Also have tried Grange, Travelers and safeco. Does anyone have a couple of recommendations for me to try to maybe win more for this particular business?
 
Don't write state minimum coverage?

That or get some non-standard carriers that do better in that market. I know Grange, Safeco and Travelers definitely do not want that kind of business.
 
If I am understanding you correctly, you are trying to compete on state minimum policies and having trouble, but once you raise the limits, you can compete, correct?

If you focus on higher limits, you will sell more value, and get better long term customers. If you sell state limits, then you are just selling on price to people that don't value good coverage, and are likely to lose the customer when they shop around again. I'd shoot for the higher limits if you want to build a long term business.
 
Selling minimum limits doesn't do you or your customers any good in the event of a serious loss. Unless you have inhouse premium financing as a profit center, you are unlikely to make money churning minimum limit price shoppers. You normally need to retain an account for 3-7 years before it becomes truly profitable.
 
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