5 Questions to Expect When Selling Auto Insurance
By Author 90
Selling auto insurance can mean saving someone from an accident, helping someone with a car purchase, and more. As an insurance agent, you’ll meet many prospects that weigh in on what policy to choose based on many factors, primarily the cost of premiums. However, it is agreeable that cutting corners on insurance can leave a client exposed to road accidents. So, as an insurance agent, you have to advise prospects on the available policy that still provides adequate coverage. These are some questions to expect from your options during the presentation.
5 Questions to Expect when selling Auto Insurance
1. Do I have adequate coverage?
You must remind your prospects that this depends on their location. Most states require liability insurance, covering accident-related injuries, legal fees, death, property damage, and vehicle damage. You can always recommend additional coverage that suits your client after meeting the minimum coverage needs. Some examples are collision, comprehensive, underinsured, and uninsured motorist protection.
Always explain how each of these plans affects your premium and out-of-pocket payments. If a prospect owns a lot of assets, you can suggest excess liability insurance.
2. Do I get enough discounts and savings?
Insurance cost is usually influenced by premiums, deductibles, and policy limits. Clients should be aware that factors like garage location, insurance score, age, and driving record will determine the price of premiums. Sometimes, a prospect is encouraged to check for “risk rating”- this helps estimate the chances of claiming the future.
Agents should inform clients of discounts available to help lower charges. Safe drivers, good student drivers, multi-car policy, continuous insurance all have values attached to them. Clients can get additional insurance for hybrid cars or new cars. Agents should inform clients of early payments and payment methods; these can influence discounts and savings. Make sure prospects are aware of all the values they are eligible for.
3. What coverage do I have in case of an accident?
When an accident occurs, the type of insurance you have will determine what happens next. Many clients might think that their auto insurance policy covers car repairs and replacement, but this is not always the case. Collision coverage will help cover damages and repairs for a client’s car, while liability insurance pays for the other person’s vehicle or damaged property. Comprehensive coverage pays for non-accident incidents like vandalism, storm damage, and theft. A good auto insurance agent will explain these to their prospects.
As an agent, you can discuss the option of roadside assistance, rental reimbursement too. Your clients might need uninsured/underinsured motorist insurance to help with medical costs when involved in an accident with a driver that has no insurance.
4. What happens if someone dies in an accident involving my car?
Bodily injury liability insurance should be suggested to clients who are concerned about accident-related expenses. This insurance covers hospital bills, medical bills, lost wages, legal fees, and rehabilitation. Remember that protecting pedestrians, drivers, and passengers should be a top priority whenever accidents occur. In some states, bodily injury liability is required, while a minimum coverage might not offer adequate coverage. Allow clients to discuss policy limits to help with their auto insurance.
Additional coverage options and protection based on your location can include these:
- Funeral expense coverage
- work/income loss coverage
- Total disability
- Personal injury protection
- First party benefits
- Accidental death benefits
5. What costs cover “out-of-pocket” in case of an accident?
When involved in an accident, clients should note that the circumstances around the accident, policy limits, coverage, and deductibles affect how much they pay for out-of-pocket expenses. If your client didn’t cause the accident, the other driver’s insurance company is expected to pay. But clients must remember that some at-fault drivers lack auto insurance, and therefore the bill might still fall back on them.
However, drivers are advised to opt for higher deductibles and lower policy limits. But there is a risk of financial crises when a person is unable to pay their deductible.
Every good insurance agent will help their client understand policies before they make the final decision. Answer all related questions and never leave your prospect confused.