Quitting Farmers, I Want to Become Independent. How?

[PitchMan]

Where are you located in in CA?
I'm in the Inland Empire, it's between LA and Palm Springs
What are the income levels in the area you plan to do business in?
Now days? 0 - 150k
What are the demographics?
I obviously like to target clients with a multiline potential..ie, homeowners, business owners, multiple autos..etc
I prefer to target newly developed areas with an age demo of 30-55

If you can answer these questions I can provide you some guidance.

Thanks for any help!

 

[gambrinus]

Start lining up your new carriers now. You're quitting Farmers anyway, so why not just start contacting the carriers tomorrow? Start with the ones that are easier to get..Progressive, Dairyland..Mendota. Also contact one of the Commercial wholesalers like BTIS. I used to be captive and have 100% enjoyed working my ass off for the past year... because I'm working for ME. Good Luck.

 

[dcorrp]

The non compete contracts don't hold up in CA. I wouldnt try to take your whole book but writing over friends and family shouldnt be a problem. All you need to be indie is E&O insurance, insurance bond, an office, and companies to write through.
Get appointed with progressive right away. Join a wholeseller like smart choice or superior access and start selling. You will then have access to lots of companies. As you grow your book of business you can later become directly appointed through the carriers and wont need a wholeseller.

 

[PitchMan]

The non compete contracts don't hold up in CA. I wouldnt try to take your whole book but writing over friends and family shouldnt be a problem. All you need to be indie is E&O insurance, insurance bond, an office, and companies to write through.
Get appointed with progressive right away. Join a wholeseller like smart choice or superior access and start selling. You will then have access to lots of companies. As you grow your book of business you can later become directly appointed through the carriers and wont need a wholeseller.

Thanks for that..what kind of commissions am I looking at if we write business through a wholesaler as you mentioned? For example; Farmers pays 20% on fire and 10% on auto.
I have heard that Smart Choice for example has a back charge on commissions?
I appreciate the advice!

 

[Surfy]

I'm following this thread because I am in the same boat.

Surfy

 

[Lyn]

Thanks for that..what kind of commissions am I looking at if we write business through a wholesaler as you mentioned? For example; Farmers pays 20% on fire and 10% on auto.
I have heard that Smart Choice for example has a back charge on commissions?
I appreciate the advice!

Superior Access pays you differently for each carrier. They have recently dropped their commisions in AR for beginning level for instance Hartford is 13%, some are 12%. You shouldn't expect to get the same level commission as you get from Farmers without direct appointments. As someone else already pointed out, you won't get direct appointments unless you can meet their volumn requirements.

On the other hand, I wouldn't return to a captive situation for the higher commission. I'll get it on my own and without having to sell the "hot" product the company wants to push whether it is a fit for your demographics or not.

 

[PitchMan]

I'm following this thread because I am in the same boat.

Surfy

I tried to pm you but couldn't due to post count. Here's my reply:
Haha...It's a small world out there that's for sure.
The problems with Farmers won't go away anytime soon, with people more conscious of spending than ever before.
Why wouldn't you be able to write the high end policies somewhere else? Everyone offers a 250/500/500 policy?
Regarding writing fire policies with Farmers; I can't tell you how many times I had a multiline policy sold with 3 cars, a boat and motorhome with Foremost, and then for whatever the reason I can't get the house to underwrite and the whole deal falls apart. None of it makes sense to the client without the home and the discount. Or I'll get it all through underwriting and then 30 days later underwriting decides to adjust premium...always up of course. Then you have a pissed off client that hates you for what he thinks is lying.

 

[Surfy]

I tried to pm you but couldn't due to post count. Here's my reply:
Haha...It's a small world out there that's for sure.
The problems with Farmers won't go away anytime soon, with people more conscious of spending than ever before.
Why wouldn't you be able to write the high end policies somewhere else? Everyone offers a 250/500/500 policy?
Regarding writing fire policies with Farmers; I can't tell you how many times I had a multiline policy sold with 3 cars, a boat and motorhome with Foremost, and then for whatever the reason I can't get the house to underwrite and the whole deal falls apart. None of it makes sense to the client without the home and the discount. Or I'll get it all through underwriting and then 30 days later underwriting decides to adjust premium...always up of course. Then you have a pissed off client that hates you for what he thinks is lying.

I have been running into pretty much the exact same thing. Luckily, it's not all about the lowest price but it's hard to sell if it isn't close or the company does weird things beyond our control.

I run into Progressive a lot. Pretty sure they have a cap of 100/300 liability although I think they can write a 1M umbrella on top of that.

No company is perfect but a lot of people make money in them anyway. I think we still have to work the system whether we are captive or independent.

Surfy

 

[OCinsurance]

I sell progressive in many states (and my disclaimer, of course, is that options and limits vary by state) and I often am able to quote 500csl or 250/500. I don't know the farmer's system, but if someone would like to to chat about the independent world, I would be happy to chat this weekend. Feel free to PM me.

 

[VaDwayne]

I have been considering going to work for Farmers,but am curious what is making you want to leave??

I sell commercial insurance for a local agency, as well as some of my own products, and I can honestly say that I have NEVER, and I literally mean NEVER, come across a business in my area that has Farmers Insurance for their commercial coverage..