Adding free perks to insurance policies

[LostDollar]

As a policy holder, I have enough problems sorting through what types of coverage I need, having any clue what I should consider that I am not being told about, having any clue as to what I should reject that I am being told about, sorting out cost options between carriers and guessing what carrier is most likely to provide good customer service when the need to file a claim presents itself.

My interest in "buying" gimmicks from the insurance company runs along the x-axis to the LEFT of the y-axis.

Volagent is an experienced insurance agent and has a nice way with words. I could not have worked out the logic pattern he expressed above, but I think it is a great statement about this issue.

 

[DHK]

I'm not a P&C insurance agent... but I'm reasonably sure that agents cannot add "miscellaneous" things to a client's insurance bill that isn't authorized by the insurance company itself.

 

[WinoBlues]

You do not understand how insurance or insurance premiums work.

 

[DHK]

The most you could hope for... is to become "junk mail" to their existing policyholders. Just like my credit union does on occasion to offer "free" accidental death policies to their account holders. The credit union gets a little commission for each person who signs up, but the insurance company does all the billing and is separate from the actual banking relationship.

All you're really looking for... is to mail to the agent or company's customer list.

 

[BADTROUT]

The only gimmick I use is integrity and the best policy fit at the best price I can provide... but If I were to toss in a spiff I would pay close attention to the state law where I am conducting business. Each state has a nominal amount that falls below a threshold .. some $10, some $25. Etc etc

 

[WinoBlues]

What is the price point per piece to the agent?

$3. Is one thing.
$30. Is another.
$300. I better see some value$ coming back pretty soon.

 

[fed up]

You CANNOT include any thing which can be converted to cash. A discount coupon offered to everybody (client or not) would be allowable. A referral coupon given to a customer for a few names to call (not sell). We used Restaurants.com in one agency as a referral reward. They cost peanuts and are a discount on the entree. They sucked because many restaurants are not part of their plan. In a world where customers complain about a $10 increase in premium, adding an additional cost to cover a gimmick, is a sure NO GO

 

[billyb]

I did a free Walmart card mailing once. Had the most response of any mailer I ever did. Sold fewer policies than I usually do from DM. Gave away way too many gift cards. Had the door blocked a few times by people demanding more than one card. Lost money on the campaign. Will never offer something FREE again.

 

[VolAgent]

I'm not a P&C insurance agent... but I'm reasonably sure that agents cannot add "miscellaneous" things to a client's insurance bill that isn't authorized by the insurance company itself.

You can if you know what you're doing.

I have a good friend that runs a non-standard shop in town. Most people also sign up for roadside assistance and AD&D supplemental products from a company different from the actual auto insurance company.

While I won't comment to his practice, as I do think he is a good guy of good integrity, it is very easy to just shove papers at someone and ask them to sign it. Most will, and as long as the payment matches what they were told, they don't care. Also, he does agency billing for the down payment, so he collects the entire amount and then send the insurance down payment to the company. Of course, it does leave the agency personally on the hook for any credit card charge backs.

 

[fed up]

While I won't comment to his practice, as I do think he is a good guy of good integrity, it is very easy to just shove papers at someone and ask them to sign it.[/QUOTE]

This got a lot of people fired years ago when life policies were automatically included in automotive sales transactions and keeping part of the premium as a regular business practice is a sure fired way to get a letter from the home office