How Do You Handle Drivers that Have No Current Insurance?

[InsuranceBrah]

I'm new to P&C and have been running into an issue.

I keep hitting drivers that have no previous insurance. Some have just refused to get it, sure. But I've run into cases where someone had Motorcycle insurance and the carriers don't seem to take that into account when asking for previous insurance. Another case a woman was driving on someone elses insurance but didn't have her name added as a driver on the policy. One girl is a new driver just looking to get started in life.

So far there is literally nothing I can do for these people. Even non standard carriers want at least $600.00 down as part of a 2 pay for a 6 month policy..

The lady that was on her sisters plan will have to pay $2100 down for a 6 month policy that's over $4000.00.

It doesn't help that I'm in Michigan where we have some of the highest rates in the country, and 30% of drivers are uninsured. This means that as of now I can't do anything for 30% of the population because they need thousands down to get started.

How do these people break the catch 22 to get the insurance in the first place to build that history of being insured?

 

[thomasm]

I'm new to P&C and have been running into an issue.

I keep hitting drivers that have no previous insurance. Some have just refused to get it, sure. But I've run into cases where someone had Motorcycle insurance and the carriers don't seem to take that into account when asking for previous insurance. Another case a woman was driving on someone elses insurance but didn't have her name added as a driver on the policy. One girl is a new driver just looking to get started in life.

So far there is literally nothing I can do for these people. Even non standard carriers want at least $600.00 down as part of a 2 pay for a 6 month policy..

The lady that was on her sisters plan will have to pay $2100 down for a 6 month policy that's over $4000.00.

It doesn't help that I'm in Michigan where we have some of the highest rates in the country, and 30% of drivers are uninsured. This means that as of now I can't do anything for 30% of the population because they need thousands down to get started.

How do these people break the catch 22 to get the insurance in the first place to build that history of being insured?

Change your income demographics

Don't allow deadbeat losers to stay in your marketing funnel.

 

[Herkster]

Either quote with Progressive or send 'em down the road. They'll no pay cancel anyways...

 

[rianna77]

Geico will insure them in my area. I'm in Pennsylvania. Refer them out.

 

[indienoise]

I've heard Michigan is a tough market. Not sure that sc is as bad, even though auto can be a bit tough here if it's not top notch preferred business, but we have a couple of standard carriers who will take a risk if they fit the profile in all other ways except prior. But most carriers like safeco, travelers, nationwide will take them if they were insured but on someone else's policy. And I've had safeco pull cycle insurance as prior. I guess it's different there?

 

[Philly]

I'm in Michigan as well and I usually quote only Progressive if they have no prior.

 

[mplsmm]

Progressive. I am shocked at the low rates with no prior insurance.

 

[rianna77]

Progressive is really high in my are with no prior insurance . I have sold the policies but I feel guilty . Geico is half , but I don't sell Geico .

 

[nyc2phi]

Find a regional substandard carrier. In my state (PA) we have American Independent and Capitol. Probably two of the worst carriers out there but they don't surcharge clients for not having insurance. Not all no prior's are bad risks, you can usually tell based off the reason they don't have insurance and their attitude about insurance while quoting them.

Also I agree with the above statement, don't focus on this client go out and market to the preferred.

 

[Allisonray78]

Mother Allstate lets us add 'No Need' for certain instances such as, being out of the country or if they didn't have a vehicle for a period of time. That fills in some gaps. But, we also need 5 years proof of prior for the best possible rate.