Geico---how Do You Compete?

[Mike Siegal]

Ok,...i'm not a PC GUY (yet) but i get my auto insurance through Geico. I tried progressive for rates and they couldn't compete.

Anyway, Geico has been the cheapest and best coverage for the money for a long time in my case. How do PC agents compete with Geico?

Thanks for your input!

 

[BlockO]

First, there is still a good percentage of people who prefer having a real agent rather than a national 1-800 number.

Second, a lot of potential customers I get that have Geico seem to have a higher percentage of state minimum liability than usual... a lot of their most competitive prices are low ball coverage where the CSR is only selling on price. Educating a customer goes a long way, as far as the risks of only carrying state minimum.

Third, while Geico can be tough to beat at times, they have their own risk appetite like everyone else. I think they're competitive, but not as dominant as you might think. this is especially true when a customer with Geico is shopping around (they're shopping around for a reason, and it's usually because Geico raised their rates).

I don't have as many carriers as most indy agents do... and I don't win them all going up against Geico. But I win my fair share. An agency with a lot of carriers probably beats them more often than not.

 

[djs]

Geico is like almost any other insurance company. They have an appetite profile that they like and compete well in. Move out of that profile and the wheels start to fall off. This is why people shop any carrier, they tend to move out of the core market.

As a P&C agent, over time, you learn to pretty quickly assess what carrier does well with what individuals. You can save yourself some time and earn some credibility points when you just tell the prospect, Hey, based on previous quotes, with your current age, driving record (whatever), you have a good premium already. Is there something else you are concerned about? Or would you like to know what better coverages will do for you?

If they are price shopping, they will walk away, thinking you were straightforward. If they have a true concern (many do), then they will proceed and you probably can do well.

Geico tends to specialize in state minimum coverages, or close to it. They do offer better coverages as well, so just try to understand why the person is talking to you BEFORE you try to earn the business. Don't be the 800 number person, be their advisor.

Dan

 

[InsCommentary]

You don't have the "best coverage" for the money. Their policy is inferior to the ISO standard personal auto policy. Just because you're comparing the same limits and deductibles between insurers doesn't mean you're making an apples to apples comparison. The actual policy language, particularly exclusions, and claims practices matter. Auto insurance policies are not the same.

 

[MGBAgency]

Ok,...i'm not a PC GUY (yet) but i get my auto insurance through Geico. I tried progressive for rates and they couldn't compete.

Anyway, Geico has been the cheapest and best coverage for the money for a long time in my case. How do PC agents compete with Geico?

Thanks for your input!

At MGB Insurance Services LLC we usually always beat Geico if you do a coverage comparison and the driving record if relatively clean. Just recommend higher deductibles and better coverage. Then sell yourself as an agent and the services you provide. Competing against agentless online companies is a waste of time because you won't win the price game. You gotta sell the value.

 

[Rationalman]

Ok,...i'm not a PC GUY (yet) but i get my auto insurance through Geico. I tried progressive for rates and they couldn't compete.

Anyway, Geico has been the cheapest and best coverage for the money for a long time in my case. How do PC agents compete with Geico?

Thanks for your input!

Geico auto does not cover punitive liability. I believe that to be true in all states. If client has any net worth he wouldn't insure with them. I beat Geico about half the time with my other carriers. With Geico, an 800 number means the client will never talk to the same person twice.

 

[RickyG]

Ok,...i'm not a PC GUY (yet) but i get my auto insurance through Geico. I tried progressive for rates and they couldn't compete.

Anyway, Geico has been the cheapest and best coverage for the money for a long time in my case. How do PC agents compete with Geico?

Thanks for your input!

In my experience GEICO will go ahead and quote/bind a new policy without running reports or at least not applying the findings of the reports to the premium. Then on renewal they lower the boom and increase the premium. In those cases, I do agree GEICO is untouchable. We have many clients leave for GEICO to call us back in 4-6 months to come back and in most cases, they end up higher than where they started to begin with do to any tickets or accidents being applied on a new policy as opposed to renewal rate they previously had.