How to Take Customers from Geico

[jemelton]

Auto insurance for the most part is about price. If the progressives and geicos claims and customer service was just terrible, then you would have more leverage with the client. But, for the most part both are reputible companies. Why not get a Geico contract and make them your last resort to put people with.

If you aren't competitive, can you look into getting some additional carriers that might make you more competitive and write more businesss.

 

[griffinins]

Of the customers we have lost to Geico, I would say 70% have come back after 6 months, saying the rates have skyrocketed. It appears, at least im my area that they aren't pulling mvr's up front. I've also heard complaints of another payment due within 15 days of their down payment, before they are put on 30 day billing.

 

[Guest]

just remember, when a client leaves for a rate reason, not a service reason, they usually will call you again, so dont leave on bad terms.....

Let them go out there and find out how the service is from others, let them get pissed off, and they will return, IF you have done a good job,

 

[g-squared]

Has anyone else ever called GEICO to get a quote for market research purposes? I did a while back. I told the guy who answered the phone that I have $500k/$1 million coverage. First thing he says is that I don't need that much coverage and he could save me a bundle if I lowered my coverage to 100/300 or even 50/100 ... WITHOUT even asking me why I had the coverages, what my HH income is, or what my net worth might be.

I've never lost to Geico, even when my price was higher, when I can point out that the person can probably afford an extra $100 bucks every six months of insurance, but they probably couldn't afford a $100,000 judgement against them. Plus, I often show that the cost per $1,000 of insurance is actually less expensive with my policy than with GEICO.

 

[djs]

The cost per $1000 of insurance is total BS. It means nothing.

Its the costco mentality. Buying in bulk and save, but what if you don't need 5 gallons of mayo and you can't use it before it goes bad? Buy it anyway, its cheap!!!!

Plus, everytime I've seen these comparisons, they aren't done correctly. They quote someone elses cost per 1000 with 25/50 coverage compared to their 250/500 coverage. Of course its less, but what if you compared to the original guys 250/500? Doh!!!!!

Okay, I know people use this system, Farmers agents in particular, but its so easy to sell against, its almost useless.

Dan

 

[g-squared]

Its the costco mentality. Buying in bulk and save, but what if you don't need 5 gallons of mayo and you can't use it before it goes bad? Buy it anyway, its cheap!!!!

Typically, here in Illinois. attorneys will do a little research to find out a person's HH income and net worth before filing a lawsuit. Every case is different, but if the person makes some money and has some assets, a typical rule of thumb the attorneys follow is to sue for 2 1/2 times the HH income plus the person's net worth. If this amount is greater than the medical bills and lost wages in an accident, the remainder is classified as "pain and suffering".

If you and your spouse make more than $40,000 a year (keep in mind average HH income in US is >$50,000 a year), having $100k/$300k coverage on your auto insurance could leave your income and assets vulnerable to a judgment against you.

How do you recommend coverages?

G^2

 

[djs]

I wasn't arguing about the increased limits, just the costco sales mentality and the lopsided comparisons.

Lawyers in CA work a bit different. They will find out both parties HH income and networth before they will take the case. They want to make sure they will get paid

Lets see, if the person makes $40K a year, 2.5 times = $100K, but he has a networth of -$100K because he is underwater in his house, he will be sued for $0.00.... hmmm, don't think so, but I understand the concept. Probably the best I've heard so far. Every lawyer I've ever talked to is after the easy money. 100/300 limits on the insurance, but we can settle in 2 weeks? Cool, I just made $30K for sending a letter and probably making a phone call.

On the other hand, I start out with recommending $500K CSL for your auto policy. It really is a much better deal, leaves most people pretty well protected (usually better than $250/$500). Why? $100K in property damage is easy to get to. You cross $100K in liability and you are in court for a while. The CSL gives you a bigger pot of money to pull from, but it does have to go in more directions sometimes.

Dan

 

[Guest]

I always quote 100/300/100 minimum, and then show the 250/500/100 and how usually its less than $6 a month, and then quote the umbrella......

a HUGE Percentage of people take the 250/500 limits and some dont take the umbrella, when you show them how little the coverage is, they take it, now, most of the time, I know I am already cheaper and dont even give them the option of 100/300 limits......

 

[iiinycboi]

now i just saw a policy from geico 423 per year. lol impossible to beat?

 

[BTFuzz]

now i just saw a policy from geico 423 per year. lol impossible to beat?

Just today I crushed Geico on a family auto policy by over $700...better coverage too. Mom, dad, 20 year old kid. Helped that I got the home as well for the multi policy but hey, not my fault they didnt bundle them before.

I rarely lose to the lizard on price in my area for preferred auto.