Ethics of Deductible Levels

[AdamB]

I have been in sales for a long time, only recently with insurance. To me, there is more money to be made in talking a client into paying more per month for a lower deductible (I'm talking auto insurance obviously). I believe it is something like 3 in 100 actually use the collision deductible. I had a gentleman who said his financial advisor told him to raise his deductible, save some money monthly (put some away for a collision should he get in one) which improves cash flow. Plus, he can afford $1000 deductible is he were to crash into something. I have to admit I couldn't argue with his decision and just went ahead with his wishes. He said that since I didn't try to sell him on the lower deductible just to make money, he will refer people to me, which he has. So, that is cool obviously, but also gets me thinking should I look at the client's best interest more and lose money in the short term to gain long term customers? Maybe I should just think for myself for the short term since no one else pays my bills for me. Anyone else actually feel like they should have sold something differently here and there to help the client more, but was thinking of the dollars? I've sold a lot of lay downs in various fields and most of the time capitalized on their ability to believe what I told them when actually they didn't need as much of this or that. Maybe I'll do a little of both just to keep the bills paid until I figure out what makes me feel good and what doesn't

 

[Norwayguy]

So, that is cool obviously, but also gets me thinking should I look at the client's best interest more and lose money in the short term to gain long term customers? Maybe I should just think for myself for the short term since no one else pays my bills for me. Anyone else actually feel like they should have sold something differently here and there to help the client more, but was thinking of the dollars? I've sold a lot of lay downs in various fields and most of the time capitalized on their ability to believe what I told them when actually they didn't need as much of this or that. Maybe I'll do a little of both just to keep the bills paid until I figure out what makes me feel good and what doesn't

First I sell L&H and investments not P&C but my understanding the money in P&C is in the level renewals and most definatly should you consider what is best for your client and not yourself. Thinking of what best for the client is in your long term interest, If all you can think about is what this client is worth in dollars right now your probably not in the right business. You don't sell insurance in Maine do you...just want to make sure I don't get any from you.

 

[Chazm]

Wow, I have only been in the biz for 8 months and I have been told left and right to do what's best for the client...it will come back to you in the end

 

[FL P&C Broker]

I thought that most people in the industry knew this, even those not in P&C but the secret to success in P&C is customer RETENTION. You won't get rich doing 5 auto policies a week and losing them next year. I am sure another agent in your area will gladly take your customers and give them what they want to keep them for the long term.

You seem greedy and only looking out for yourself. It will get you nowhere in this business.

 

[coccoc]

I thought that most people in the industry knew this, even those not in P&C but the secret to success in P&C is customer RETENTION. You won't get rich doing 5 auto policies a week and losing them next year.I am sure another agent in your area will gladly take your customers and give them what they want to keep them for the long term.

You seem greedy and only looking out for yourself. It will get you nowhere in this business.

good insurance

 

[DHK]

The financial advisor is doing a better job of coordinating the coverage with their assets and liquidity.

However, something you CAN do is cross-sell a personal liability policy. It will be a value-added, another policy on the books for you and the money saved from raising the deductibles can be used for that policy.

Retain the client, better service and retain the premium dollars.

 

[arnguy]

good insurance

Huh?