Competing Against Dishonest Agents

[TwoLabs]

I know I'm not the only one that runs into this. How do you combat when you are trying to pick up an account, and they don't have a youthful listed or any other material information that does not create a level playing field?

I'm quoting against an Allstate agent right now. Household is mom, dad, and 18 year old boy. 5 vehicles. 4 vehicles are on one policy. All newer vehicles with PD. Boy is not listed as a driver. They then have a second policy, you guessed it. 1986 Jeep, liab only, min limits and that is where the boy is a driver.

My arguments have been something to the effect of, "You are playing with fire here by not having your son as a driver on your primary policy. If your agent suggested you do this, I'd have your agent put in writing that your son would be covered on your primary policy. If he won't put that down in writing, then I'd be very skeptical."

 

[VolAgent]

I would ask it more as a question.

So when JR goes out and wrecks your new Ford/Chevy/etc., do you want the insurance company to pay for it, or do you want to pay the entire cost yourself?

When you get that blank look, Allstate has started excluding collision coverage for unlisted drivers. They will be on the hook to repair or replace their car themselves.

 

[insurance1822]

Unfortunately, most people will not care. This is why I'm jaded...because an overwhelming amount of people are morons.

Move on.

 

[DHK]

My arguments have been something to the effect of, "You are playing with fire here by not having your son as a driver on your primary policy. If your agent suggested you do this, I'd have your agent put in writing that your son would be covered on your primary policy. If he won't put that down in writing, then I'd be very skeptical."

You screwed up. No, not with the policy or with the truth. You screwed up by putting the blame on THEM and causing THEM to be defensive. Would you go back to anyone that made you feel STUPID???

You need to SELL the fact that there's a blatant issue that needs to be addressed. I'd start off with a question. I'd start off by saying something to the effect of:

"I'm confused. Didn't you say your 18 year old son is a driver? Can you help me understand this, because, based on what you're telling me, I'm confused as to why your policies are structured as they are. And until I understand, I have some concerns about your current coverage."

Sell it and show CONCERN for their situation. Don't "call them out" or even call their AGENT out. Why? Because if they made a mistake with their current agent, why won't they feel that they could make another mistake working with you???

I'm not saying you're wrong. I'm only saying that you don't need to "prove" that you're right and they and their agent are stupid.

 

[insurance1822]

Advise them how it's supposed to be. 99% of the time they won't care. If they don't care in lieu of your professional input then don't try to convince them, move on. Remember, most are idiots.

 

[1manshow]

See it on the commercial end all the time. We normally tell them we see a huge deficiency and are not willing to quote apples to apples. If they have no real concern....1822's "***" comment is a fit...move on.

 

[achaffee]

As the market gets tighter some agents get desperate.

 

[djs]

Out of curiosity, what car does the kid drive? I know a lot of parents who do this because they simply don't want to pay for Junior to be rated on the BMW that he will NEVER drive.

They see their agent as smart enough to save them from paying a fortune to insure Junior on the wrong cars. You can say he is an ***, but he solved a problem for them, which they see as a win.

Odds are, they excluded him on the 4 car policy so it was a very deliberate thing. This also means they are very aware of your concern. I would express the concern more like why have minimum liability limits on a driver who has a life time of earnings in front of him?

If you can't come up with something close to comparable in price, you'll have to move to another prospect. You can better insure Junior but my guess is they will be a bit price sensitive.

 

[1manshow]

These are the same idiots that will pursue an E&O claim when they're denied coverage.

 

[shawnmwalker]

It is a correct business practice to select your clients, in the same manner they are deciding to work with you.

IT IS 100% OK TO WALK AWAY FORM THIS SITUATON AND CLIENT.

It is ok to walk way from $479 in Commission to not have to work with this client. Get to a financial point where walking away from this makes your day instead of ruining it. Send the work to an agent not as savvy


One other thing. There is nothing wrong with helping your potential new client understand what the games the competition is playing to lower the rate artificially, point out fees they are getting charged, etc.

It is a consultation. If they buy cool, if not, ok. Wedge, Sell, Consult.