Combating Agencies that Give "teaser" Quotes....

[LDG]

I own several agencies in Florida and we are appointed with almost every significant carrier doing business in the state.

Nobody can offer better pricing that we do if quotes are "apples to apples." I feel that our closing ratio isn't higher in part because other agencies send out "teaser" quotes with high deductibles or minus replacement cost on personal property.

For instance today a customer asked why we were so much higher than another quote he got and after reviewing his quote the other agency left off replacement cost and was quoting a 5 percent hurricane deductible. I was able to make the sale because he contacted me to discuss the quote and I pointed out the differences.

But we don't generally don't get to have this conversation because many quotes are for internet customers or referred by a lender or realtor and we never speak to them.

What is your agency doing to combat this issue?

 

[billyb]

Same thing happens when you sell term online. A prospect who is 5' and weighs 300 pounds with diabetes gets a preferred plus quote while I try to give them an idea of what to expect when the policy is issued. Win some lose some, but I don't want to have to place a policy with a premium that is higher than I originally quoted.

 

[Insurance Dog]

I own several agencies in Florida and we are appointed with almost every significant carrier doing business in the state.

Nobody can offer better pricing that we do if quotes are "apples to apples." I feel that our closing ratio isn't higher in part because other agencies send out "teaser" quotes with high deductibles or minus replacement cost on personal property.

For instance today a customer asked why we were so much higher than another quote he got and after reviewing his quote the other agency left off replacement cost and was quoting a 5 percent hurricane deductible. I was able to make the sale because he contacted me to discuss the quote and I pointed out the differences.

But we don't generally don't get to have this conversation because many quotes are for internet customers or referred by a lender or realtor and we never speak to them.

What is your agency doing to combat this issue?

why are you selling on price

 

[insuringsc]

I'm not in Florida, but we combat that situation by telling the prospect up front that other agents are known to do the "teaser" quotes with unfavorable deductibles/coverages, which will cause the premium to be artificially low. If you are 100% transparent about the process, the prospect respects that. Then, when the other agent does exactly what you said they will do, it discredits them and puts you into a consultative role (and 9 out of 10 times you win the business).

 

[NSRH]

I see this issue alot in telesales. The best thing to do is to integrate this possible objection into your presentation and overcome it before it surfaces.

Victor Antonio wrote a book called, "Response Block Selling". He does a great job elaborating on exactly how to overcome what you've outlined.

 

[gambrinus]

Send a cover letter with each quote... brag about your agency and the way you do business.. the way you generate your quotes etc... slam the "teaser quote" method of "Bait and Switch"

 

[achaffee]

I agree with Russ. Explain the values on your quote requests that all of the important coverages are included such as replacement costs.