It seems like every day I get a client who received an auto quote from GEICO and they want me to beat it. I just can't! I have pushed my personal service for them. An A rated company. Excellent claim and customer service. All they want is lower prices. It seems that everyone is shopping for price. Forget about service....My clients say...."if your price was even $50 higher-I would not change. But, the quote that GEICO gave me is $300 a year less than what I paid last time!" I realize that the easy answer is check other companies - I can't! How do I 'attack' them-is there anyone out there that knows anything.
Geico
- Thread starter drad
- Start date
Don't attack them. Doesn't do any good.
No matter what you've been told, no matter what you say, anything over a 10% price differential is hard to beat.
A couple of points to work with though:
- Always mention its not about how easy it is to pay the insurance company, it's about how easy it is for the insurance company to pay you. i.e., it's all about the claims process.
- Mention why higher liability limits are necessary, quote 250/500/100 (or better). Use this to emphasize this is why you need an agent with experience dedicated to working for you.
- Shop Geico (and others) yourself. They tend to have good rates for 20 somethings, but find your market in comparison to them. Focus on those niche markets.
Lastly, offer to be their agent anyway. The fact that you currently may not have any business with them doesn't preclude you from being their insurance advisor. After all, rates change, situations change, other needs arise. I do this simply by asking them if it's okay if I stay in touch for future opportunities, and heck, I'll even send you a birthday card.
Auto is a tough, fluid business. Companies with good rates today tend to have to push their rates up tomorrow. Use it to build a prospect database, and work the database.
Dan
No matter what you've been told, no matter what you say, anything over a 10% price differential is hard to beat.
A couple of points to work with though:
- Always mention its not about how easy it is to pay the insurance company, it's about how easy it is for the insurance company to pay you. i.e., it's all about the claims process.
- Mention why higher liability limits are necessary, quote 250/500/100 (or better). Use this to emphasize this is why you need an agent with experience dedicated to working for you.
- Shop Geico (and others) yourself. They tend to have good rates for 20 somethings, but find your market in comparison to them. Focus on those niche markets.
Lastly, offer to be their agent anyway. The fact that you currently may not have any business with them doesn't preclude you from being their insurance advisor. After all, rates change, situations change, other needs arise. I do this simply by asking them if it's okay if I stay in touch for future opportunities, and heck, I'll even send you a birthday card.
Auto is a tough, fluid business. Companies with good rates today tend to have to push their rates up tomorrow. Use it to build a prospect database, and work the database.
Dan
InsuranceGuru
Expert
- 95
Depending on who you represent and how well they handle claims, I'd say you might highlight some of the things consumers who are unhappy with Geico have said (of course, be ethical about it and say, "I can't tell you whether or not these things people are saying have any truth behind them, but it's out there and you should know.").
Then, you might look into the department of insurance in your state and get a report on them to see how well they're doing. The way I read it, if you're having a problem getting consumers to see the value, then you need something better than "Our customer service is better..."
Make the point and paint the picture if you really think your carrier is better. "Mr/s. Consumer, when you pay less, you are running the risk of settling for a fraction of the cost of what you need and possibly spending a LOT of time getting what you're owed when you file your claim. You might not even have enough coverage in the first place. I've been doing this for X years and this is what I can do for you..."
Then do what Dan says and build even more value and opportunity for the sale...
"... whether you buy from me or not, let me at least offer you my expertise with this as an insurance advisor. We can meet for 10 minutes, I'll review all the information in front of you, and cover all the bases on this quote for coverage. I'll give you my expertise for free so you'll know what you're buying, and maybe by doing this I'll be able to earn your business on the next one."
Then, set the appointment. I think if you're sincere enough and show a subtle sense of urgency, you'll have a better chance of getting them in the door to meet with you. And if you can't book the auto, if you're licensed in other lines you might successfully cross-sell another product.
And if Geico is really that competitive in your state, why not sign on with them? Are you captive or is there a reason you don't offer Geico in your agency? Just curious...
Then, you might look into the department of insurance in your state and get a report on them to see how well they're doing. The way I read it, if you're having a problem getting consumers to see the value, then you need something better than "Our customer service is better..."
Make the point and paint the picture if you really think your carrier is better. "Mr/s. Consumer, when you pay less, you are running the risk of settling for a fraction of the cost of what you need and possibly spending a LOT of time getting what you're owed when you file your claim. You might not even have enough coverage in the first place. I've been doing this for X years and this is what I can do for you..."
Then do what Dan says and build even more value and opportunity for the sale...
"... whether you buy from me or not, let me at least offer you my expertise with this as an insurance advisor. We can meet for 10 minutes, I'll review all the information in front of you, and cover all the bases on this quote for coverage. I'll give you my expertise for free so you'll know what you're buying, and maybe by doing this I'll be able to earn your business on the next one."
Then, set the appointment. I think if you're sincere enough and show a subtle sense of urgency, you'll have a better chance of getting them in the door to meet with you. And if you can't book the auto, if you're licensed in other lines you might successfully cross-sell another product.
And if Geico is really that competitive in your state, why not sign on with them? Are you captive or is there a reason you don't offer Geico in your agency? Just curious...
Last edited:
- Staff
- #4
'Do you have Erie? I personally have them and when I called Geico to compare. they wouldn't even give me a rate.
InsuranceGuru
Expert
- 95
- 220
Very quickly.....
They seem to be very competitive upfront. But, I have run into a couple of occasions such as.....
Mother and Son left me to go with them. I looked at the dec (they brought into me) and they were ran as a married couple. Mom was so outraged at the blunder - but stayed with them anyway for the savings.
Single male left me to go to them and within months totalled the vehicle. There was no collision coverage liab/um/comp only. He had purchased this online without counsel.
If you do the homework you will discover that you will get a better rate from them at the end of the month. The call center reps (it would seem) have quotas that they are shooting for. This all is just a little too used car dealership for me.
Finally, with underwriting this lenient up front, the client will eventually renew the policy at the premium that it should have been to begin with.
My advice to you would be to:
Offer your expertise in evaluating the coverages.
Congratulate them on their awsome savings.
And, ask them to keep you in mind in the future if anything changes.............IT WILL
Finally, this carrier can usually not even come close to the product and rate that you are providing your preferred clients (usually)
....... If you have gained a client based on rate only - you will lose that client based on rate only
They seem to be very competitive upfront. But, I have run into a couple of occasions such as.....
Mother and Son left me to go with them. I looked at the dec (they brought into me) and they were ran as a married couple. Mom was so outraged at the blunder - but stayed with them anyway for the savings.
Single male left me to go to them and within months totalled the vehicle. There was no collision coverage liab/um/comp only. He had purchased this online without counsel.
If you do the homework you will discover that you will get a better rate from them at the end of the month. The call center reps (it would seem) have quotas that they are shooting for. This all is just a little too used car dealership for me.
Finally, with underwriting this lenient up front, the client will eventually renew the policy at the premium that it should have been to begin with.
My advice to you would be to:
Offer your expertise in evaluating the coverages.
Congratulate them on their awsome savings.
And, ask them to keep you in mind in the future if anything changes.............IT WILL
Finally, this carrier can usually not even come close to the product and rate that you are providing your preferred clients (usually)
....... If you have gained a client based on rate only - you will lose that client based on rate only
Gotta love the commercials though...well, except the ones with the money with eyes...those are just stupid.
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