Auto Insurance Cold Calling Questions

[DavidBlumenthal]

Hi folks,

I am interested in opening a call center for connecting people who are interested in a auto insurance and the insurance companies.

The insurance companies (Via an affiliate program) are willing to pay $16 per client who has insurance for less than 6 months or and $21 for the ones who have it for more than 6 months.

I was thinking Cold calling random lists all over the US (besides a few states that the affiliate is not working in).
Offering a free quote for auto insurance that might get them a cheaper rate or more coverage than they're currently have.

If they say they are interested, i will be connecting them to an affiliate toll free number(where they will be speaking with the insurance agency) and if they are staying on the line for more than 2 minutes i am getting paid.

I will be calling by myself so i won't have to pay anything and check if it works.
If it does work,my cost to hire someone to make calls 8 hours a day would be $32.
so if he makes more than 2 leads a day i can make money with this and scale it.

I was wondering if someone think it's feasible to make more than 2 connections like that,or even reach 5 or more a day.

 

[Rick Deckard]

I think you are better off trying to make a friendship with a high end auto dealer like Lexus or Cadillac where you ensuring $50,000-$75,000 automobiles and likely can insure any other vehicles those owners own as they usually have more than one vehicle...or you can make $600 quotes on Toyota Corollas all day long...NTTAWWT of course.

 

[VolAgent]

I think you are better off trying to make a friendship with a high end auto dealer like Lexus or Cadillac where you ensuring $50,000-$75,000 automobiles and likely can insure any other vehicles those owners own as they usually have more than one vehicle...or you can make $600 quotes on Toyota Corollas all day long...NTTAWWT of course.

From everything I have been told, dealerships are not sending referrals for people buying a new Lexus or Cadillac. It is people buying used cars who may not have had insurance or comp/collision and now need it. Someone who buys a new Lexus will just call their agent and add the vehicle to their current policy. Those referrals will be few and far between.

 

[Rick Deckard]

From everything I have been told, dealerships are not sending referrals for people buying a new Lexus or Cadillac. It is people buying used cars who may not have had insurance or comp/collision and now need it. Someone who buys a new Lexus will just call their agent and add the vehicle to their current policy. Those referrals will be few and far between.

I guess that's one way to look at it.

-It doesn't matter how you get the referral or create the business, the bottom line is you want to be quoting high value vehicles and don't assume all these folks have an agent at their fingertips. If you truly believe that then just close up shop now. Everyone already has an established agent everyone, you can go home now. That's just silly and I'm putting words in your mouth now so 10 lashed with a wet noodle for me.

I appreciate your post, just disagree with a little of it. Hope you don't hold it against me, cheers.

 

[VolAgent]

I guess that's one way to look at it.

-It doesn't matter how you get the referral or create the business, the bottom line is you want to be quoting high value vehicles and don't assume all these folks have an agent at their fingertips. If you truly believe that then just close up shop now. Everyone already has an established agent everyone, you can go home now. That's just silly and I'm putting words in your mouth now so 10 lashed with a wet noodle for me.

I appreciate your post, just disagree with a little of it. Hope you don't hold it against me, cheers.

Yes, you are taking what I said out of context, but you know it so all good.

I'm not saying that they aren't opening to making changes. I'm saying based upon what I know you are unlikely to get those referrals from a dealership. Think about it, you are closing up a deal, of course you verify if the person has insurance. If they do, great move on! Only if they don't do you call your friendly agent. They aren't going to try to send you referrals to people who already have insurance. And the number of people buying high value cars who don't already have insurance will be much smaller, so fewer referrals.

So the gist of what I am saying is, you will need to find these people in another way. If you could get a list of newly registered vehicles, that would give you access to these same people.

Think of referrals from business people in this way, you have to solve a problem for them. If there isn't a problem, then they are unlikely to refer someone to you as it CREATES a problem for them. A dealership referring buyers to an insurance agent when they already have insurance just creates headaches they don't need.

 

[DavidBlumenthal]

Thank you guys for all the replies and suggestions.

I am still wondering if its feasible just to call random people and interest them in a better rate for their auto insurance.

 

[Rick Deckard]

Thank you guys for all the replies and suggestions.

I am still wondering if its feasible just to call random people and interest them in a better rate for their auto insurance.

Is it worth it to CC random folks for auto-insurance? My guess is no and I base it on a coupe of things from personal experience now CC for personal lines to SFR(single family residence).

-You might get a lot of hits but the conversion rate is going to be 10-15% so for about every 10 leads, maybe someone will jump ship to save a couple bucks on their auto...avg premium? $800 maybe? You would need 100 leads a week minimum to produce $10k in premium weekly, maybe $50k in premium monthly calling 24/7...not sure it's worth it.

-If you could focus on doing auto insurance on newer vehicles priced over $50k like big trucks and SUVs then have at it. How you specifically target those folks, I'm not real sure to be honest. But maybe others know.

Good Luck

 

[VolAgent]

Thank you guys for all the replies and suggestions.

I am still wondering if its feasible just to call random people and interest them in a better rate for their auto insurance.

I really have to question how much value you put upon your time if you are seriously considering this. Also, unless you scrub a list, you will almost certainly have DNC violations.

The best idea that comes to mind that meshes with what you want to do is to get a list of newly titled/registered vehicles. Then you could filter it for higher value vehicles, and then you will need to scrub it against the DNC if you plan to cold call it. After all that, you may not have a big enough list to justify the effort. Much less considering how many you sale and the profit generated.

 

[DavidBlumenthal]

Again i am getting paid for transferring to companies like allstate etc'.
for every person that i cold call and offer a quote on auto that can save them money.
the question is how many would want to do this?
if i put an agent calling for 8 hours making 300-400 calls a day, is it possible to get 10 leads ?

 

[Mike Siegal]

Again i am getting paid for transferring to companies like allstate etc'.
for every person that i cold call and offer a quote on auto that can save them money.
the question is how many would want to do this?
if i put an agent calling for 8 hours making 300-400 calls a day, is it possible to get 10 leads ?

Jesus...if you are making that many calls, it seems like it would be possible.

I guess the only way to find out if it works would be to do it.