Independent Agents, Help Your Client Understand State Min Are Bad

[Joshpowell]

Most Independent Agents I know hate state minimum car insurance. My company,from an E&O standpoint, asks us not to even issue state minimum policies.And in a price-driven market it's difficult for an Independent agent to beatcaptive rates. The issue in my experience is that captive agencies seem to bemore willing to write state minimums! So, the problem I have is helping myprospects realize that price shouldn't be the only factor. And by having thecheapest price, you sacrifice coverage most times.

So, what do you say to close the sale with your prospects when this happens?



www.jpowellconover.com

 

[AZ Insurance Guy]

Re: Independent Agents, Help Your Client Understand State Min Are

Good question. funny how most captives brag about quality, and they have a book full of 15/30! if our clients ask for minimum I put it one step higher, and in most cases it literally is only 2bucks month higher, dont even mention 15/30 to them... so we write 25/50 and up. On rare occasions we will honor a 15/30, but will have the insured sign an additional form saying they were offered higher limits.

 

[BlockO]

Re: Independent Agents, Help Your Client Understand State Min Are

In Josh's state, the minimum is 25/50. Here in Ohio is it only 12.5/25. Talk about frustrating!

I agree with what AZ said. Letting the customer know that liability coverage is NOT unit priced goes a long way. And that also doesn't apply just to those with state minimum. I just had someone last week who carried 25/50, and he requested a quote for that level. the difference between 25/50 & 50/100 was only $5/6 mo and the difference between 50/100 and 100/300 was only $28.

I simply told him "for less than a dollar a month you can double your liability or for about $5 a month, you can quadruple it".

when you put things into those terms, you don't have to sell it. the customer sees the value in it.

 

[Joshpowell]

Re: Independent Agents, Help Your Client Understand State Min Are

In Josh's state, the minimum is 25/50. Here in Ohio is it only 12.5/25. Talk about frustrating!

I agree with what AZ said. Letting the customer know that liability coverage is NOT unit priced goes a long way. And that also doesn't apply just to those with state minimum. I just had someone last week who carried 25/50, and he requested a quote for that level. the difference between 25/50 & 50/100 was only $5/6 mo and the difference between 50/100 and 100/300 was only $28.

I simply told him "for less than a dollar a month you can double your liability or for about $5 a month, you can quadruple it".

when you put things into those terms, you don't have to sell it. the customer sees the value in it.

Awesome, exactly what I wanted to know! Thank you!



www.jpowellconover.com

 

[Norwayguy]

Re: Independent Agents, Help Your Client Understand State Min Are

So how do you agents feel about States that have minimum limits and then have a special program that allows low income people to get insurance and the limits are less than the state minimum...

If I was a consumer in California hit by someone on that program I would be pissed that they didn't have to at least have state minimums to protect ME!

 

[Joshpowell]

Re: Independent Agents, Help Your Client Understand State Min Are

So how do you agents feel about States that have minimum limits and then have a special program that allows low income people to get insurance and the limits are less than the state minimum...

If I was a consumer in California hit by someone on that program I would be pissed that they didn't have to at least have state minimums to protect ME!

I dont like that idea! I have never heard of this, but if it's true I dontsee it actually working to anyones benefit. Not only is the driver not-at-faultgoing to be pissed, but his insurance company is not going to be happy. Andafter they pay for the damage that the at-fault driver's insurance did not, (ifthey do). They are going after the at-fault driver for compensation. Nobodywins! This situation happens with state minimums very often. It won't be anybetter with limits below state minimum.

www.jpowellconover.com


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[Norwayguy]

Re: Independent Agents, Help Your Client Understand State Min Are

I dont like that idea! I have never heard of this, but if it's true I dontsee it actually working to anyones benefit. Not only is the driver not-at-faultgoing to be pissed, but his insurance company is not going to be happy. Andafter they pay for the damage that the at-fault driver's insurance did not, (ifthey do). They are going after the at-fault driver for compensation. Nobodywins! This situation happens with state minimums very often. It won't be anybetter with limits below state minimum.

www.jpowellconover.com




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Yeah there is a thread on here about a program for low income people in the state of Kalifornia (Yes I misspelled it on purpose).

 

[Turz]

Most Independent Agents I know hate state minimum car insurance. My company,from an E&O standpoint, asks us not to even issue state minimum policies.And in a price-driven market it's difficult for an Independent agent to beatcaptive rates. The issue in my experience is that captive agencies seem to bemore willing to write state minimums! So, the problem I have is helping myprospects realize that price shouldn't be the only factor. And by having thecheapest price, you sacrifice coverage most times.

So, what do you say to close the sale with your prospects when this happens?



www.jpowellconover.com

It's all relative.

In my area it's the opposite. The Indies that carry Progressive, Geico, and Safe Auto can't sell anything but the minimums in my area. Geico does better than the other two. Average captive is at least 50/100. Captives in my half of the state want 100/300 for an average in their book.

 

[Guest]

It's all relative.

In my area it's the opposite. The Indies that carry Progressive, Geico, and Safe Auto can't sell anything but the minimums in my area. Geico does better than the other two. Average captive is at least 50/100. Captives in my half of the state want 100/300 for an average in their book.

Are you reading any of the posts or just the orginial post?