How to compete with $30 a month auto insurance

[rogelio de luna]

I'm starting my own IA from my home and to be able to provide enough carriers I sign up with Superior Access, the problem is how can I compete with $30 a month auto insurance, I've search everywhere for a carrier with low rates but not luck, I was working with a local captive agency but never sign up any non-compete or any similar agreement, I want to bring my costumer to my agency, but is getting harder, because I don't have the resources I'm starting my book from 0 so no appointment can be done right now, I do have the experience and what is necessary to sell, but at this point I just want to offer something affordable to bring them with me. I'm from south Texas for one of my oldest and most loyal clients they have a $1080 premium for auto insurance the lowest I have quoted is $1460, both for 3 cars. they just want me to be able to offer the same premium just to sign up with me. My question is does anyone now a carrier or wholesaler that I can used to be able to compete on those cases?

 

[InsCommentary]

How do the policy coverages and claims services compare?

 

[rogelio de luna]

Your absolutely right the coverage is the same liability 30/60 and 25 and claims service is way better no comparison at all

 

[InsCommentary]

Unless they’re both using the same ISO form, Coverage is likely not the same. For example:

Price Check

 

[rogelio de luna]

Yes your example is perfect both policy's ISO are different, the coverage that I'm providing is better for the insure with more coverage, the difference is a few bucks

 

[fed up]

Check through your carriers and you might well find a sweet spot in their coverage tiers which can allow you to write more coverage for the same or better price. You are going to be hard pressed to beat $30 per month unless it is liability only but you may also find $35 per month brings higher liability coverage

 

[Christian Kennedy]

First the $30/month client... As a long-time agent, what you really have to ask yourself is, "Is this worth my time?" In addition to providing a service to others, you are in the business to make a living and provide for your family. After Superior Access takes their cut, how much are you going to get on a $30/month policy? Maybe $3 per month? Maybe $5? Money isn't everything, but if you go out of business because you aren't writing any business, you won't be able to help anybody. But if you really want to help this person, don't focus on the price. Focus on helping them get covered with you for years to come. Usually a client who is paying $30/month is not with a preferred company. They have bought a minimum liability limit policy, and will never be with a preferred company. Even if they get moved to a company like Progressive that will write both non-standard and preferred, they will never move into the preferred tiers with minimum limits. So run the person a quote that will eventually get them moved into a preferred tier or that you can quote with a preferred company in the future. Even if the premium ends up being $45/month, explain to them how in the long term how that is going to affect your ability to offer them preferred rates from a number of carriers. If their property damage limit is $25,000, ask them how they are prepared to pay for the excess amount if they hit and total a Tesla (or a loaded Altima for that matter). What if they run over a gas pump? When they see their rates steadily drop over the policy renewals for the additional coverage you sold them because they are moving into preferred tiers, they will be a client for life. Secondly the friend who wants you to write their business... If they are looking just at price, they are going to leave you when another "friend" offers them a better price than yours. Align yourself with good, stable companies, and sell yourself, not the rate. If they are strictly looking for price, in my experience they will always go next door at renewal to save a buck (even friends and family). Best wishes in your new adventure. Don't give up.

 

[rogelio de luna]

I really like your post and because I'm not going to sell liability that cheap, I decided as you say sell myservices to them not the policy. it has been just a few weeks that have pass, but I'm learning day after day how to be a better sales agent, and what I'm selling is security, Instead of looking at the prices I decided to explain point by point how one cheap policy can affect their future and the difference is minimum at the long run. Thanks for you post Christian

 

[Markthebroker]

I used to be 99% personal, 1% commercial. Then bit by bit I became more and more commercial, and less personal. Now I am 100% commercial. Competition is a non issue now.

That's how I dealt with the competition.

 

[rndz7]

Unheard of in these parts ...NJ.....I noticed Florida agencies advertise this low rate. I heard its a financing HOOK........