Nonstandard Auto Agency in Houston Area Fixin to Call It Quits

[nonstandardbums]

My story:
Opened in the beginning of 2004 selling only nonstardard auto and mobile home ins. From the getgo business was booming. It was EASY. So busy so fast that by the middle of 2005 i hired on a csr fulltime. Business continued to roll in and my csr quit at the end of 2008. Due to the uncertain times in the financial market at the end of 2008 I decided not to replace her. 2009 was my best year. I had a few months in the spring of 2009 where I wrote over 150 new policies per month BY MYSELF!!! Business plateaued off for a few years after that then really has begun to come down in the last couple years, with this year being a sharp decline. A few observations.....

1. Hurricane Ike ruined my mobile home business
2. Despite the area being very fast growing, my local competition has grown even faster.
3. Online competition is ever increasing and eating away at me.
4. I used to have a variety of different types of customers, now I seem to only do quotes for the no licensed bums.
5. Standard companies that used to run off nonstandard auto customers or not have a competitive product DO have competitive rates now and are writing them.

I just don't see much of a future for nonstandard auto nowadays.

 

[djs]

You have achieved total 'burn-out' from working by yourself running an insurance agency. I've seen this a lot.

Either sell the book or hire a CSR to take the routine, mundane stuff off of your plate.

Add standard auto to your lineup. Make sure you can migrate your clients. Don't let them walk because they fixed the problem. Also, add homes. You may focus on autos, but having homes will help stabilize your book a lot.

Dan

 

[CASouth]

within the non standard auto market; same carriers may write non standard commercial auto; Infinity, kemper, Progressive, Mapfre, National General etc all write trucks up to 30,00-40,000 lbs I would try that venue and it does open the door to more commercial accounts; but for personal line; its very competitive now. hope this help

 

[agentinsouth]

My story: Opened in the beginning of 2004 selling only nonstardard auto and mobile home ins. From the getgo business was booming. It was EASY. So busy so fast that by the middle of 2005 i hired on a csr fulltime. Business continued to roll in and my csr quit at the end of 2008. Due to the uncertain times in the financial market at the end of 2008 I decided not to replace her. 2009 was my best year. I had a few months in the spring of 2009 where I wrote over 150 new policies per month BY MYSELF!!! Business plateaued off for a few years after that then really has begun to come down in the last couple years, with this year being a sharp decline. A few observations..... 1. Hurricane Ike ruined my mobile home business 2. Despite the area being very fast growing, my local competition has grown even faster. 3. Online competition is ever increasing and eating away at me. 4. I used to have a variety of different types of customers, now I seem to only do quotes for the no licensed bums. 5. Standard companies that used to run off nonstandard auto customers or not have a competitive product DO have competitive rates now and are writing them. I just don't see much of a future for nonstandard auto nowadays.

Based on your market, I am going to go out on a limb and guess you are in south Houston? Go a little more south... Say Friendswood/ south of Clear Lake is looking like a great surplus lines HO3 market and Non-FEMA flood market.... I had a customer move to Friendswood, TX and the lowest premium was $3900!! If I lived in Houston, I'd be meeting every REALTOR in the area!

 

[nonstandardbums]

actually north of houston.

Thinking i may just sell and call it quits. Heart not in it anymore and online will eventually make me obsolete anyway.

What kind of jobs can ex self employed agents get? I've applied several places with no response. I'd like to get into underwriting. I think employers are scared to hire the formerly self employed.

 

[indienoise]

Sounds like you're either just burned out or looking for any excuse to get out.
Yes there are new competitors and mediums every day but this market is only getting larger. Things are different than they were 10 years ago, are you changing your practices to adapt?
I left a captive arrangement this year to open a primarily nonstandard indy agency. I don't have time to fool with the non payers, so I don't really pursue them. However I am really surprised by the retention figures my carrier rep's are reporting.
Make sure you are doing marketing online also. Automate as much of the servicing as possible. And sounds like you really need the extra help, make sure you get it.

If course, if you really just want out, now's as good a time to sell a nonstandard book as ever, IMO. It's just too bad I'm nowhere even close, lol.

 

[nonstandardbums]

Maybe it's just a Texas thing but all i ever get are spanish speaking and or texas residents who claim to not have a license (actually suspended/revoked and expired). Had several people lately call for quotes with nothing but honduras passports...wtf? Don't see how a business can be built with "customers" like these, but this is what my nonstandard book has devolved to. From reading the responses, it may be just me???

Would like to hear from any other nonstandard agents in southern Texas.

 

[indienoise]

Well, your market could be markedly different from mine. However, the matricula/passport folks are much better, steadier business than your typical nonstandard customer. At least for me. Much more likely to bring their friends in too, once you get in good terms with them.

 

[agentinsouth]

Well, your market could be markedly different from mine. However, the matricula/passport folks are much better, steadier business than your typical nonstandard customer. At least for me. Much more likely to bring their friends in too, once you get in good terms with them.

What/ how are you marketing to this group?

 

[indienoise]

What/ how are you marketing to this group?

I can't say it's much different from marketing to preferred customers. Who do you know?

These folks are part of really tight knit communities. You rarely find them insured at captive agencies or specialized offices. Almost all of them buy insurance at multiservices offices, where they get translation services, have essential paperwork done, and sometimes even buy groceries, get haircuts, etc all in the same place.
Then, you have to get an "in" so they trust you.
For me, I have a long standing relationship with one of the biggest buy here pay here car lots in the state, which has Spanish speaking staff. I have an arrangement where I've set up shop there, and it took little effort to start marketing to them. If they have a strong connection to that business, sometimes they will switch even if your proposal is a bit higher than what they're currently paying. Like any other demographic, it's about the confidence they have in you.
From that point, referrals start to come in on their own, but I still promote a referral program that rewards customers with small gift cards and quarterly prize drawings as extra incentive.
Next, I've got eyes on a new independent cell phone services store that also handles immigration documents and vehicle registrations. I'm hoping to start a relationship there as well.