Direct Interception of a Bad Sale?

[BTFuzz]

I concur. However, I somewhat disagree with the logic of saving that 60 dollars over 10 years. It would take 3.5 to 4 years to break even for saving that extra 500 in deductibles. After 4 years of saving 60 dollars at 2 policy periods each year (remember auto renews every 6 months in almost all states), that is 480 saved.

That sounds great over 10 years but now imagine someone getting into a wreck during those first 4 years. They are not going to be saving the money quoted, and even worse now they have an extra 500 to pay. Some people pay a little more now to avoid paying a LOT more later. Heck, isn't that the point of insurance?

Obviously it's a case-by-case basis and facts can change per policy, but for a lot of people, if not most, the better choice is to spend an extra few bucks a month to have a 500 deductible rather than 1000. Or a 250 deductible rather than 1000.

I was mainly referring to home insurance as the claim likelihood is much less.

 

[NCAgent]

so OP. the question is...........what did you do about this?

I said something about it after the agent left. I would have confronted him but if he did something like that I don't know what he would have done to get the sale and I'm not going to be in his face about it.

I told the mother what was going on afterwards and got her to pull the policy up online that she currently has. I showed her the differences. We went online and shopped a few places. She is still looking around right now.

Once I get appointed to sell P&C and get a little more experience out in the field, I'll probably come back and ask if she wants me to keep her in my book.
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I was mainly referring to home insurance as the claim likelihood is much less.

I'm more inclined to agree with you in home insurance. However, I still recommend doing a lower deductible and paying more each month. People don't save up their money for emergencies the way they need to (many people are guilty of this anyway). When it is time for a claim they might not have the extra 500-1500 left over after the claim is done for the deductible. I recommend, and some people agree, to pay a little more but in a set bill so you can budget properly each month rather than saving 5-10 bucks a month and then when the time for a claim happens, you are out at least double the deductible.

I still agree with that being the people's choice though, and I always told them both trains of thought.

 

[Guest]

noob,

I disagree, you should have said something right then and there. Ask about it, but dont tell him who you are, make him answer difficult questions and make him squirm, then tell him who you are and what he is doing wrong. Might be the only way to wake him up

 

[NCAgent]

noob,

I disagree, you should have said something right then and there. Ask about it, but dont tell him who you are, make him answer difficult questions and make him squirm, then tell him who you are and what he is doing wrong. Might be the only way to wake him up

Yeah this is still all new to me and I'm still a little gun shy. Looking back at it yes I should have gotten in his face and made him look like a fool. But that's not how I roll.

I'll have plenty of time to get into agent's faces later down the line though, huh?

 

[briko3]

Are you sure she doesn't have money problems she might not want anyone to know about? She might have given him her budget and that was what was best for her budget. She might already have the other policy.

 

[NCAgent]

Are you sure she doesn't have money problems she might not want anyone to know about? She might have given him her budget and that was what was best for her budget. She might already have the other policy.

There comes a time where you have to be able to say to someone "this is a shitty policy, I don't feel right selling it to you." And the mother didn't know ACV from replacement cost, and some of the endorsements like water backup. If she knew and was educated, that could be one thing. I had a guy who wanted the CHEAPEST, most WORTHLESS renters policy for Allstate so he could get a 10% discount on a 2.2k auto policy; it makes sense and I didn't fault him for doing it because it saved him tons of money. But there was no established rapport or precedence that would justify an agent selling her a policy like that.

Or am I wrong? I am still rather new in expanding the horizons, maybe I'm just being naive?

 

[Insurance-Guy]

There are people that will do anything to make a sale. More than likely he will be out of the business in a year or two. There are also consumers who don't care and want the absolute cheapest thing. If you want to know what to do it is simple...put yourself in their shoes. What would you do in their position. For me personally a 1,000 dollar deductible is common sense, however if I had a client who was a single mom or was in a different financial position then I would consider it and what deductible they are comfortable with. That is what you have to do...policies are not one size fits all.

 

[RFNAPLES]

There are different philosophies in buying and selling insurance.

The only known loss the insured has is their premium. I advise clients to pay the insurance company as little as possible. Don't dollar trade with the company, you will lose. Insure the big risks, self-insure the little ones.

I routinely advise having a $500 deductible on comp and collision if there is a loan on the car or it is less than 5 years old and dropping both after that. I warn my clients not to risk more than they can afford to lose but remind them that 50% of the collision losses will probably be someone else's fault.

Most families have more than one vehicle and since 50% of the losses are probably not their fault, I don't recommend rental reimbursement. Most of my clients have health insurance and AAA therefore I don't recommend med pay or towing.

It's not a matter of trying to get business, but insurance philosophy. It is how I handle my own insurance too.

 

[briko3]

There are different philosophies in buying and selling insurance.

The only known loss the insured has is their premium. I advise clients to pay the insurance company as little as possible. Don't dollar trade with the company, you will lose. Insure the big risks, self-insure the little ones.

I routinely advise having a $500 deductible on comp and collision if there is a loan on the car or it is less than 5 years old and dropping both after that. I warn my clients not to risk more than they can afford to lose but remind them that 50% of the collision losses will probably be someone else's fault.

Most families have more than one vehicle and since 50% of the losses are probably not their fault, I don't recommend rental reimbursement. Most of my clients have health insurance and AAA therefore I don't recommend med pay or towing.

It's not a matter of trying to get business, but insurance philosophy. It is how I handle my own insurance too.

I like your thinking.

 

[infoe]

There are different philosophies in buying and selling insurance.

The only known loss the insured has is their premium. I advise clients to pay the insurance company as little as possible. Don't dollar trade with the company, you will lose. Insure the big risks, self-insure the little ones.

I routinely advise having a $500 deductible on comp and collision if there is a loan on the car or it is less than 5 years old and dropping both after that. I warn my clients not to risk more than they can afford to lose but remind them that 50% of the collision losses will probably be someone else's fault.

Most families have more than one vehicle and since 50% of the losses are probably not their fault, I don't recommend rental reimbursement. Most of my clients have health insurance and AAA therefore I don't recommend med pay or towing.

It's not a matter of trying to get business, but insurance philosophy. It is how I handle my own insurance too.

As do I, and as you run your agency and recommendations to clients for insurance, there are as many variations as there are other insurance agents. I think the inherit problem lies in when (what I assume) is the OP is confronted with an agent giving a quote to a client without explaining why he quoted this way or finding the correct needs for the customer. Essentially making all quotes uniform and commoditizing the experience. That's why us as agent's have to tread lightly with this and make sure we don't fall into this trap because then our employees fall into the trap.

It becomes difficult however, when the customer does'nt give you any time at all to quote them. Or allow time to explain the coverages.

I know I have explained coverages on people that it has gone in one ear and gone right out the other. They did'nt understand a word I said, nor did they care. So each situation is very different.

You have quite a list of designations, going for anymore? how long did it get you to get them all?