State Farm Agent Looking to Go Independent/ Get a Safeco Appointment.

[CSanchez]

I am currently a State Farm Agent, I however am not the owner of the Agency and work under another Agent.

I am the top producer in the office and usually write about 30 new policies a month, but since I am not the agency owner I see very little of the commission. (The majority being hispanic customers)

I am also hispanic and fluent in Spanish and have to turn away lots of customers who don't have Drivers Licenses.

I am looking to start my own Agency and get appointments with Carriers who accept drivers without DL's and what not. I don't think I will have much of a problem getting these appointments.

I also want to have a top provider, I know I can't have a independent agency with State Farm and after researching I'm thinking I want to work with Safeco, they seem to have reasonable commissions and also hear good things.

The question is, could I get an appointment? I've heard it's hard to get appointment with them and I would have a blank book. I however have lots of positives, there are no hispanic Safeco insurance representatives in my area and the vast majority of my customers come see me and look for me. I get tons of referrals.

Also I would be looking for other insurance product to offer.

BTW I am looking for direct appointments I am not looking to joint a group.

Thanks

 

[AdvisorsIns]

In your situation I would highly recommend rethinking the cluster/alliance/SIAA option. They will get you these appointments you need, negotiate you much better commission rates and over rides + get you in profit sharing immediately. For your Hispanic clientele you are going to need non-standard carriers. Like Bristol west, Victoria, progressive, and there are others that will take those drivers in but they will surcharge the crap out of them until they have an instate license. Most still ask for the international license #. This is an expensive way to do business. The clientele usually pays in cash a lot. Do not have bank accounts. Etc... Creates a lot of service work. Good loyal clients for sure but it will cost you in the long run due to cost of doing business. You will not be able to get appointed by yourself with any preferred carriers. Safeco has realigned themselves as a preferred carrier with very little threshold for standard and non standard business. Their home rates are high as well. I hope you great success. I worked for a SF agent for 4 1/2 years and then went Indy scratch. I know where your coming from. Make sure you have a bullet proof business plan. Also make sure you don't pinch pennies when it comes to technology. Get a management system and Rater system day one. And do yourself a favor. Don't accept cash.

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What state are you in? I would recommend having at least 2 preferred carriers. Maybe Allied, Travelers, Safeco, Hartford, Then get yourself at least two mono-line property carriers. Then get yourself 2 non- standard carriers for the no drivers license lapse in coverage bad record sr22 non- owners crowd. Make sure you have access to a brokerage for surplus & excess lines. And access to a broker for preferred commercial lines.

 

[scooter33]

Just write a good business plan and pickup 2 preferred and 2 non-standard. You don't need a cluster. The contact is one sided and they have you by the balls for really long time.

 

[CSanchez]

In your situation I would highly recommend rethinking the cluster/alliance/SIAA option. They will get you these appointments you need, negotiate you much better commission rates and over rides + get you in profit sharing immediately. For your Hispanic clientele you are going to need non-standard carriers. Like Bristol west, Victoria, progressive, and there are others that will take those drivers in but they will surcharge the crap out of them until they have an instate license. Most still ask for the international license #. This is an expensive way to do business. The clientele usually pays in cash a lot. Do not have bank accounts. Etc... Creates a lot of service work. Good loyal clients for sure but it will cost you in the long run due to cost of doing business. You will not be able to get appointed by yourself with any preferred carriers. Safeco has realigned themselves as a preferred carrier with very little threshold for standard and non standard business. Their home rates are high as well. I hope you great success. I worked for a SF agent for 4 1/2 years and then went Indy scratch. I know where your coming from. Make sure you have a bullet proof business plan. Also make sure you don't pinch pennies when it comes to technology. Get a management system and Rater system day one. And do yourself a favor. Don't accept cash.

----------

What state are you in? I would recommend having at least 2 preferred carriers. Maybe Allied, Travelers, Safeco, Hartford, Then get yourself at least two mono-line property carriers. Then get yourself 2 non- standard carriers for the no drivers license lapse in coverage bad record sr22 non- owners crowd. Make sure you have access to a brokerage for surplus & excess lines. And access to a broker for preferred commercial lines.

But that is the thing though, the cash customers will be a big part of my business. I have to take cash and most of my marketing will be targeting that specific group. It's a untapped market as far as I see it and specially where located at.

The reason I don't want to do a clusters because I would only need to get Safeco and maybe a few others.

 

[scooter33]

But that is the thing though, the cash customers will be a big part of my business. I have to take cash and most of my marketing will be targeting that specific group. It's a untapped market as far as I see it and specially where located at. The reason I don't want to do a clusters because I would only need to get Safeco and maybe a few others.

Just make sure to charge a decent broker fee and you will be fine with cash customers. He is right...you you are non standard heavy, the service will take up all your time over time and you will peak really fast. Of course you can pick up support staff, but that will create more overhead.

 

[CSanchez]

Just make sure to charge a decent broker fee and you will be fine with cash customers. He is right...you you are non standard heavy, the service will take up all your time over time and you will peak really fast. Of course you can pick up support staff, but that will create more overhead.

I plan on doing just that!

 

[scooter33]

I plan on doing just that!

You really should pick up more than one preferred. Trust me, you don't want to put all your clients with one carrier. When that one carrier raises rates, changes underwriting, etc.. You will want another home for your preferred clients.

 

[AdvisorsIns]

Just make sure to charge a decent broker fee and you will be fine with cash customers. He is right...you you are non standard heavy, the service will take up all your time over time and you will peak really fast. Of course you can pick up support staff, but that will create more overhead.

Is the legality of charging broker fees different for each state? Is there different licensing for this? I have never charged a fee for anything but have thought about it. Not sure how thAt part of the business works.

 

[scooter33]

Is the legality of charging broker fees different for each state? Is there different licensing for this? I have never charged a fee for anything but have thought about it. Not sure how thAt part of the business works.

I'm just in two states, so not sure about others. Just need to have them sign a discloser form that you are charging them a fee.

 

[CSanchez]

Yes, I know for the cash clients it's usually 40 or 50 plus 3 service fee for cash payments.