Something profitable you might want to try

[warnerins]

There is a website called autowebapp.com. The site is "on the spot insurance" that is specifically targeted for car dealerships. You sign them up for free and they access the site (under their specific code). They then are able to place vehicles and drivers on their policy and insure their customers for 1 to 30 days with full coverage insurance. Allowing them to sell the vehicle and "Roll" the customer off of the lot within minutes.

This insurance type product has been approved by state insurance departments in 24 states. There is no E&O exposure because you are simply signing up the dealership to use this product presented by autowebapp.com.

After the dealership signs up for the product, they are able to insure the vehicle and customer, print the ID cards, take payment for the policy or get billed by autowebapp.com. Every time they do this - you are paid a commission based on the length of the policy.

I currently have 77 car dealerships that are signed up and have been paid commissions on over 300 applications in the last year. Once the dealership is yours, they are always yours. There are no charge backs and a copy of the electronic application is emailed to you instantly.

So, not only are you receiving commission on the dealerships work but also are obtaining a qualified lead of a potential client that just bought a vehicle and that will need to purchase their own policy within 1 to 30 days.

I had a 95% success ratio in obtaining the appointment with the dealerships during the initial call and a 100% closing ratio signing up the dealership decision maker at the appointment (no cost - no brainer).

 

[myinsurebiz]

Re: Something profitable you might want to try!!

I currently have 77 car dealerships that are signed up and have been paid commissions on over 300 applications in the last year.

That's about 4 per year each . . .

What was the average commission?

1 to 30 days coverage can't be that much 'eh?

Tom

 

[warnerins]

Re: Something profitable you might want to try!!

The commission is between 20- 40 dollars per app. Roughly made 9000 for a rolling 12 months. Out of the 300 applications I rolled 50 percent into new clients and whatever the rounding worked out to be. I met with the dealerships about 2 years ago and has almost turned into a set it and forget it product. Some dealerships never use it others use it obviously more often.

 

[saieddie]

Re: Something profitable you might want to try!!

Who underwrites their business? How can their be no E&O exposure? They have an unlicensed individual advising them on an insurance purchase under your license.What happens if theres a claim?

 

[warnerins]

Re: Something profitable you might want to try!!

American National Property & Casualty is the UW.

These are the same E&O questions I had....
The dealership rep is not selling or advising the product but merely placing a vehicle and driver on the dealerships annual policy for a short period of time and covering their risk.

The dealership is also not under your license. You have just signed them up to participate in AutoWebbApps program. Any claims are processed by AWA and American National.

 

[saieddie]

Re: Something profitable you might want to try!!

Sounds reasonable. I'd be worried what a large claim would do to my policy if I was the dealership though.

 

[Soaringagent]

Re: Something profitable you might want to try!!

Cool, that seems interesting...

 

[somarco]

Re: Something profitable you might want to try!!

Sounds like someone came up with a very creative marketing plan. Who is more receptive to this? New car dealers or used car only? Are there ANY restrictions on who can buy this policy (DUI, suspended license, etc.)? Are there classes of risk or is everyone charged the same rate? Do the policies automatically expire at the end or is there a renewal offer?

Converting 50% is fantastic. Great prospecting tool.

I am not P&C licensed but this looks really slick.

 

[mazz8]

Re: Something profitable you might want to try!!

Went to the site, not much information. How did you get that deal? The site just says sign up now..lol

 

[warnerins]

Re: Something profitable you might want to try!!

Sounds like someone came up with a very creative marketing plan. Who is more receptive to this? New car dealers or used car only? Are there ANY restrictions on who can buy this policy (DUI, suspended license, etc.)? Are there classes of risk or is everyone charged the same rate? Do the policies automatically expire at the end or is there a renewal offer?

Converting 50% is fantastic. Great prospecting tool.

I am not P&C licensed but this looks really slick.

New and used car dealerships seem to both be receptive. There are absolutely no restriction on driving record or driver. In fact, some dealerships use this product when they have a young driver or driver with terrible record. That way the insurance premium does not kill their sale.

Every policy is rated the same (this is the only down side). The policy is expensive. In NM it runs 70 for 3 days and just over 300 for a 30 day policy. Most dealerships roll the cost of the policy into their deal or just pay it themselves. They have no problem with the cost because they are paying for the convenience of getting the policy NOW (when they need it).

There is no renewal offer for the customer. This policy is short term "on the spot delivery" coverage. This is great for me because the customer will only have short term coverage and then need to buy their own quickly.

The website is set up for dealerships to sign up themselves. However if you hit the contact link and email Barbara King, you can sign up as an agent and this alows you to sign up the dealership under your production code.

One other quick detail, you can log in as a dealership by using TESTNM as the login ID and the password (case sensative).... it is probably TESTCA in California and so on. This will allow you to see what the dealership sees and try the product out with prices and test policies, ID cards and more....

If you would like to know the process that I used in setting appointments and signing the dealerships up. Let me know.