How Do You Approach Some of these Borderline Standard/non-standard Cases?

indienoise

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Had a gentleman come in to my office today, asking what companies I represent. I always am a bit leery when I get that question, and even more so when I asked him about his driving record, and he just tells me to pull his CLUE and find out. In the past 6 months he's gone from Nationwide to Safeco and is shopping again. (He acquired this coverage elsewhere, he would be a new client to me)

He's one of these people that is just barely hanging on to a standard auto policy. He's got state minimum limits, and he has multiple claims and accident history between his wife and himself.

I hate to put something like this with a standard carrier, and as it turns out one of my regional nonstandard carriers actually comes back with a better price than Safeco anyway. I'm confident he can shop all he wants, and not find a better price. I explained to him the difference between the standard and non-standard, and he plainly told me his main concern is price.

In these sort of cases, do you have any qualms about taking someone from a standard carrier and placing them in non-standard, given you've informed them what kind of differences it could mean?
 
I have a feeling you already know the answer to this & just want some reassurance..

BUM ALERT - BUM ALERT - This man is a Level I Bum.

Do NOT write him w/ your standard markets & I wouldn't even write him PERIOD. It's just going to be trouble. If you do write him, I would absolutely get him to sign everything in the office, keep copies of his prior dec pages & make him go on EFT

It took me a few years to walk from writing business & I still HATE to do it...but I've learned.

You really have to field underwrite for your preferred carriers because bums are like drops of contaminate in fresh water...they will spread & dirty your book. Remember, long term money comes from being profitable. These bums WILL perpetuate claims in your book & the sting of those claims isn't worth the quick commission. If you get unlucky enough to get loss ratio problems (which you will have if you bums like this...) a carrier can look at your book & start to ask why you've written these bums w/ poor prior insurance histories & claims.

A bum here...a bum there...next thing you know you'll have a loss ratio problem. All my scum bag bums go to GMAC and/or Progressive & the loss ratios are 100% vs <40% w/ my preferred carriers.

I bet he drives a Honda Civic, Prelude or Accord (no model newer then 1999.) Or a Dodge Caravan?


And BTW Safeco has Non Standard policies & tiering so you can't just assume they're in standard. And even so, who cares about taking them from standard to non standard if they're a state minimum bum.
 
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Red Flags

1. Walks into office
2. Only cares about price
3. Loss history

This guy will be a claims and service nightmare unless you write him and tell him to call the 800# for the service center lol.
 
Cater to the people and give them what they want. The guy is obviously shopper so treat him like one. He will get his low $ bare bone policy and you will get +1 policy. You informed him the difference so I wouldnt spend to much thought beyond that. Save your energy for someone that cares about their insurance
 
I'm quite aware those are red flags. I stated as much from the get-go, lol.

I didn't figure I should bother any of my standard markets with it, and I knew Safeco did nonstandard in the past, I didn't know that's something they still do.
 
I'm quite aware those are red flags. I stated as much from the get-go, lol.

I didn't figure I should bother any of my standard markets with it, and I knew Safeco did nonstandard in the past, I didn't know that's something they still do.

The system still allows agents to submit non-standard but the carrier reps don't want you to. My friend got terminated for writing all his non-standard with Safeco because they paid more than Progressive ha.
 
^ I'm sure they didn't just suddenly pull his appointment for that? That sounds a bit heavy handed. Not even a conversation to pull it back>?
 
^ I'm sure they didn't just suddenly pull his appointment for that? That sounds a bit heavy handed. Not even a conversation to pull it back>?

They warned him lol he just didn't care he has plenty of other carriers. They are aren't competitive in the DC area anyways.
 
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Had similar situation. Called him that night with the premium through Progressive. Gave him the price($160 a month and his goal was under $100) Told me he would think about it. Haven't heard back from him and have no intention of calling him back.
 
Indeed. Even though I may not see eye-to-eye with some folks on this forum on all subjects, I have definitely learned in the past couple of years that there are may potential customers out there who are just not worth fighting for. I haven't heard anything else from this guy after I gave him my proposal, and I'm not going to bother calling him. If he comes back, I'll write it for him, this particular company pays as-earned anyway, so I won't be out anything. If not, oh well.

I've built a sizeable and loyal customer base in the non-standard business, so it's not all as bad as somebody like ins1822 would have you believe, just have to find the right ones. They identify themselves, just like the bad ones do.

Mainly, I just have to un-learn the ways I learned as a captive - some people just don't belong in standard, and that's ok. Now that I have programs for them that are actually competitive, I don't have to try to fit them in a standard company. My only mental battle to contend with is my rush to build a preferred book with my new agency, so as to get some direct appointments. But I know I need to go about it the right way.
 
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