Quick Binding Authority for Auto

Discussion in 'Auto Insurance Forum' started by zee123, Feb 1, 2017.

  1. zee123
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    zee123 New Member

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    Hi, i just joined smart choice and regret it since it takes a day or same day binding authority. I need policy issued within 30 min since most of my clients are buying cars from a dealer and need insurance asap. Can anyone advise what other clusters provide instant binding? Thank you
     
  2. djs
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    djs Super Moderator Moderator

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    Doesn't Smart Choice get you binding authority? Most clusters start with you writing through the home office, but move you to your own appointments once you start some production.

    You can get some direct appointments yourself with perhaps progressive and a regional carrier or 2.


    Dan
     
  3. lukifer
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    lukifer Well-Known Member

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    I am looking at going through them too and had the same thoughts. Which companies have easy appointments and quick bindings? Non-standard and standard would be great.
     
  4. djs
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    djs Super Moderator Moderator

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    In the P&C world, there are a few things that don't mix well together:

    - New agent (agency)
    - Easy / quick Appointments with standard / preferred carriers
    - No proven history of production
    - No proven track record of loss history

    Progressive has historically been one of the easiest 'large' carriers to get appointed with, but in some geographic areas, they have clamped down a lot and wanting production and the ability to show loss history.

    You can usually find regional carriers that will work with you, at least on the non-standard part.

    That said, it never hurts to ask various carriers. You want to have conversations with them anyway and find out what they need to get an appointment.

    Dan
     
  5. lukifer
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    lukifer Well-Known Member

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    Yeah.

    Got some connections at used car lots/ BHPH, but since I'm captive I can't write anything they send me because my company thinks bad credit people are Satan incarnate and deny everything.

    PArt of the reason why I'm looking at going independent.
     
  6. VolAgent
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    VolAgent Well-Known Member

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    Those people are also a lot more work. While you can certainly build an agency off that market, it will require a lot more work per policy than the preferred market.
     
  7. lukifer
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    lukifer Well-Known Member

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    Totally get that. However, I am currently in the business of turning away business. While it is never my intention to focus on the more non-standard side of things, if there is money on the table, I want to be able to take it.
     
  8. BlockO
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    BlockO Well-Known Member

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    A lot more work for an agent new to non-standard. but once an agent learns the non-standard biz, there are procedures that go a long way in weeding out the bad/pain-in-the-ass customers..... then it just becomes a little more work, not a lot.

    Preferred market is definitely better vs. non-standard, but not that big of a difference that agents who don't fool with non-standard make it out to be.
     
  9. VolAgent
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    VolAgent Well-Known Member

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    That makes a lot of sense. Although it sounds like this guy is also newish to insurance and working with a carrier that doesn't do non-standard. So he may not know the procedures to simplify his life when dealing with that market.
     
  10. BlockO
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    BlockO Well-Known Member

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    He'll learn quickly, as there isn't much to learn as far as the weeding process.... Learning how to deal with people bad about lapses & re-writes is the bulk of it.

    On the other hand, getting leads primarily from used car dealers brings up other challenges.
     

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