Archive for October, 2009

Tips to Start a Successful Insurance Agency

Friday, October 16th, 2009

Just like any worthwhile endeavor, starting a car insurance agency necessitates in-depth viability study and tons of preparation. Investing a great amount of time in developing the company is crucial, and so is total commitment‚ but once everything is done and followed conscientiously, your business will flow smoothly and you’ll be surprised at how profitable a car insurance agency can be.

Before you can enter into any business transaction with and on behalf of a car insurance company, you must first be a licensed car insurance agent. Know the requirements that need to be met to become a licensed insurance agent. If you’re keen on starting the right way, it pays to have prior experience in the industry. You’re then sufficiently armed with vital facts and intricacies inherent to car insurance. If you haven’t been, consider working at another agency to start off. Once you’re competent enough in dealing with clients, selling insurance and managing claims from the simplest to the most onerous, you’ll then be more prepared to open your own car insurance agency.

Being in the insurance agency business, you’ll need to show that you have sufficient financial capital to fund claims you’re expected to pay. You will need to demonstrate to the Financial Services Authority (FSA) that you have a sensible underwriting copy. An approval from the Department for Business, Enterprise and Regulatory Reform is also a must, as is purchasing your own insurance. Aside from insuring the equipment, furniture and office, you must acquire errors and omissions insurance necessary in the instance you are sued by a client for misdeed committed in the course of securing an auto insurance policy.

It is imperative to solicit car insurance companies for which you’ll have the authority to secure coverage. To be successful in the car insurance agency venture, you need to have more than a few insurance companies so you can compare quotes for clientele. This means having the authority to sell car insurance policies underwritten by the insurance company. It is better to have more affiliations, so that when one client’s record does not fit well within one company’s underwriting guidelines, you’ll have other options and can offer an alternative quote. Finally, you must build a pool of clientele. A wide customer base is the secret of the most lucrative car insurance agencies. Even before opening up the agency, spend time developing your clientele. You want to have a base of customers so you can start the operation running as soon as your agency opens to the public.

Opening your own successful insurance agency can be a challenging, but satisfying, endeavor in the end.

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Why You Should Buy Insurance Leads Online

Friday, October 16th, 2009

Car insurance is required by law in the United States, which means most drivers have already obtained a satisfactory car insurance policy. It is for this reason that insurance companies who cold call prospective customers are wasting their time and likely to get hung up on. However, when an insurance agency or agent purchases reliable car insurance leads online, the likelihood of a viable transaction, high number of sales and agent-client relationship grows tremendously. Buying car insurance leads online enables insurance companies and agents to spend time focusing only on potential consumers currently searching for car insurance or that have expressed some interest in purchasing insurance. The total cost of purchasing leads online is small when compared with the immense benefits the company and agent would receive from doing so in the long run.

Each time a blatant cold call is made, time is ticking. The phone call is placed, the phone rings at a potential client’s home and only sometimes is the phone call answered. Once the call is answered, the possibility of getting desired results is just 2 percent, according to Jeremy Miller, a sales and marketing recruiting firm Partner. This equates to 98 percent of cold calls ending with no beneficial result to the agent, along with wasted time. In order to maximize agent time and energy, calling only those potential customers who have genuinely expressed an interest in purchasing car insurance would drastically change the percentages of successful calls in favor of the agent.

New insurance companies, or newly trained agents, will definitely find buying car insurance leads online to be a highly beneficial business practice because of the quick and effective return on investments. By focusing solely on potential customers who have already expressed an interest in car insurance, the number of customers gained will be higher, the number of clients will grow quicker and with that will come a stronger client base. A strong client base for a new agent is an important resource to use in gaining even more clients later.

While new agents are sure to benefit highly, veteran insurance agents will also find that buying auto insurance leads online are incredibly beneficial to business. A huge spike in the number of happy clients, a decrease in the amount of time wasted due to a drop in the cold call hang-ups, and general knowledge that the agent is only contacting folks actually interested in being contacted are just some of the reasons seasoned and new agents will be happy once they’ve made the leap to buying leads online. Buying prospective client leads online is the one way to ensure your business is working up to its full potential.

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Why Online Car Insurance Shoppers are Valuable Shoppers

Friday, October 16th, 2009

The Internet has allowed online car insurance shoppers to take matters into their own hands when it comes to the rates they pay. Many Internet users are beginning to demand that car insurance providers offer them the opportunity to shop for their needs when it suits them best. The culture surrounding online users is such that they expect to be able to get information at their convenience, not during normal office hours. Because of this, insurance leads can now be generated from online traffic any place anytime, day and night, benefiting car insurance companies.

The popularity of Internet shopping for car insurance allows the insurance provider to invest once in its online presence with a website, and then recoup its investment many times over a long period of time from the clients the website has generated. The cost of providing an interactive application provides potential clients with all the information they might need pays for itself in short order. Voicemail, the only comparison that can be used to this sort of contact with potential clients, only works when the potential client leaves questions and contact information. Data delivery is inexpensive, and when your website visitor has the capability to get answers at their convenience, you’ll win in the long run.

Often not having direct, personal contact with potential clients is considered a recipe for disaster. Many sales professionals feel they must have hands-on capabilities with individuals seeking to learn more about various car insurance products. The statistics, however, tend to bear out the opposite. When online car insurance shoppers visit a company website, they usually want to gain knowledge, and don’t require direct contact with an agent for the website to influence them. They really just want to know what it will cost them to insure a vehicle they currently own, how much insurance they need for a motorcycle they are considering buying, of if they should add a second vehicle to a current policy. And, these answers can be found online with a click of the mouse.

Today’s technology savvy, Internet-connected online car insurance shopper simply wants access to their answers. And they want those answers when it matters most to them. Often the desire to investigate making a change to ones insurance happens during times when an insurance office is closed ‚after the workday is done and the kids are put to bed. Having access to a feature-rich, database-driven website provides potential customers the luxury of feeling they are in charge of their search. They are happier because they feel empowered‚ and rightfully so. Even in the event that a customer does not choose to purchase during these fact-finding website visits, they are usually very receptive to returning and buying car insurance at a later time.

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How Online Car Insurance Leads Can Create Success for Your Agency

Friday, October 16th, 2009

When attempting to increase the success of any car insurance agency, a critical tool is the use of online leads. Car insurance leads that are generated through, or obtained from, a variety of online sources may help a car insurance agent to broaden their penetration into a relatively saturated market. Leaving this as an un-utilized, or even as an under-utilized tool, can be the difference between the success or not, and even between the survival or not of a car insurance agency.

While most drivers already have car insurance of some sort, many are looking for either more comprehensive or more affordable coverage. In addition, new drivers are licensed every day. Particularly in the current economic environment, when consumers are becoming increasingly selective with their limited consumer dollars, online lead generation is a cost-effective way to reach a broader audience. Furthermore, depending on the specific tool employed in the accumulation of these leads, the car insurance agent can proceed with a higher degree of confidence that the subject of their sales efforts has some interest in the product being offered‚ online shoppers have demonstrated an increased willingness to conduct business anonymously and with a lower degree of required service. The payoff to the consumer, in his or her mind, is a more competitive price and a more hassle-free shopping experience. The benefit to the car insurance agent is that he or she can turn the business into a numbers game, communicating with a far higher number of potential clients than if individual meeting were required. With a relatively low closing rate, the agent can still be successful due to the high number of people contacted.

Another advantage of using online car insurance leads is that they allow both an agency and its agents to spend less money on the most expensive and time-consuming part of the sales process ‚ that part which comes before the consumer has begun a relationship with the agency. At this stage, the agent is gauging interest, and often spending time and resources developing that relationship. The mere fact that the source of an online lead likely is comfortable with online communication means that fewer dollars will be required per prospect. This can allow even the freshest or smallest car insurance agency to compete on a much larger scale.

In general, while the specifics of online lead generation are important and the process must be carefully controlled, the upside to using this integral tool in growing both a car insurance agency and an individual agent’s book of business greatly outweigh the challenges. As the world moves to an increasingly paperless world, maintaining an online presence and becoming familiar with the process will continue to grow in importance.

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How To Effectively Market Your Car Insurance Agency

Friday, October 16th, 2009

With technology rising and online usage increasing every day, it is not uncommon for a car agency to invest in an online presence. In online car insurance marketing, a new customer is formed as soon as he provides a zip code and an e-mail address. From that point, an agent knows what rates and requirement a customer needs and how to follow up with him or her. However, just because a car insurance agency is online, doesn’t make these results a given. The most effective marketing strategies that make them possible are diligent use of search engines, e-mail retrieval systems, providing customized quotes and allowing policyholders to pay instantly.

A March 2009 Forbes study showed that the strongest online marketing strategies are search engines, e-mail and e-newsletter output, pay-per-click capabilities, behavioral targeting and site sponsorship. It also still pays to advertise on search engines, though that is considered a more inconsistent business move. According to emarketer.com, blog forums and links also help build networks where your identity will reach future customers. Outside of that, it is up to your designer to create interactive pages where your customers can provide contact information, ask questions you can respond to and make buying decisions. Also referred to as Electronic Customer Relationship Management (ECRM), your online car insurance website should be able to operate 24 hours a day providing quotes, customer service car information and insurance package deals. A creative design and tech savvy team will be able to enable all these systems to boost your visibility, allow you to promote yourself as an interactive service and turn your leads into sales that you can continue to contact with specific email deals.

Good examples of this sort of strategy use are Progressive.com and progressiveagent.com, both of which were recognized by The Web Marketing Association for their use of marketing skills to boost website traffic. The Internet has emerged as one of the first places consumers turn to for researching insurance purchasing decisions, said Matt Marko, Progressive‚ marketing process manager. “In order to take advantage of this change in consumer behavior, our agents need the ability to be easily found by potential customers online. Progressive Insurance recently turned to Web.com for a new marketing plan that includes more search engines, web traffic analysis and real-time auto insurance quotes.

In a web-based world, potential car insurance customers are demanding the ability to control their options and find the answers to questions at any given time. By analyzing the traffic flow and research designs to maximize marketing, car insurance agencies should easily be able to meet these needs and beyond, ensuring a steady and stable build to their client base.

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How to Determine if Online Car Insurance Leads are Qualified Leads

Friday, October 16th, 2009

Buying car insurance leads online can be a risky proposition if you run right into it without thinking it through first. Sometimes, it can be difficult to tell whether you’re going to get good leads that could turn into new policies, or if you’re basically paying for a section of a phone book. Nevertheless, it’s a good idea to buy good online car insurance leads if you can find them, as they can greatly improve your sales when well qualified. However, in this case, just make sure you do a bit of research before making any purchases.

Most websites that sell online car insurance leads will describe their leads as “qualified.” It’s an industry term with very little meaning on its own. Ideally, a “qualified” lead is a consumer that is interested in buying new car insurance and has the means to do so. Keep in mind that even when qualified, car insurance leads are by no means automatic sales. The salesperson must still use some finesse to close a deal with a qualified lead. However, simply having the prospect’s information can be extremely valuable to an excellent salesperson with a good approach. The ideal qualified lead has been well researched by the company that’s selling it, and all contact information has been confirmed to be accurate and working.

Some websites call a lead “qualified” without doing any real research on it. Their lead might be a 70-year-old man with no car and no money that hates phone calls and has moved twice since his information was last updated. Unfortunately, if the website deems him “qualified” by their standards for online car insurance leads, he’s still listed as qualified. The best way to determine whether leads will actually be useful to your own agency is to ask around. Check Internet reviews of lead websites, and ask any colleagues if they’ve had experience buying car insurance leads online. Contact websites that you’re considering and simply ask them how the term “qualified” is defined in their service. Make sure that any website you’re considering offers a guarantee. For example, you ensure that you will get your money back if the leads don’t have accurate contact information.

While there are certainly companies out there that use the term “qualified” misleadingly, a car insurance agent can sort through his options to find websites that offer valuable leads. A ready, accurate list of truly qualified leads can be a huge advantage in the field, and can greatly improve sales if the correct approach is developed and used. Insurance agents should take the extra time to find a good online car insurance leads website, as the returns are certainly worth the investment.

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How a Car Insurance Agency Can Reduce Car Insurance Costs

Thursday, October 15th, 2009

Today‚ car insurance agents are in a perfect position to help their clients weave through the potentially overwhelming and costly process of purchasing car insurance. Exemplary customer service ensures that the car insurance agent is seen as a trusted advisor and allows one to establish lasting relationships that can ultimately span generations. The foundation for creating an enduring relationship is client education. Gaining a good understanding of the client’s personal situation is paramount, as is being aware of their future plans and goals. This knowledge enables the car insurance agent to rise above the rest by compiling educational resources that allow the client to make the best decisions possible for their family and their particular situation when it comes to car insurance coverage.

Along with the basics of communicating and the state and local vehicle car insurance coverage requirements, there are other important considerations involving the client’s lifestyle and driving habits. The communication of the importance of this information to the client’s budget places the agent even more firmly into the coveted role of advisor.

It’s likely that the client has been asked questions regarding his or her driving habits, annual mileage, traveling habits and the like, in the past. However, it’s just as likely that the client was in the dark as to how this affected their car insurance pricing. Communicating the importance of client education issues such as enrolling in traffic school after receiving a violation, maintaining a good credit record, good driver discounts and good student discounts are invaluable. These are issues that the car insurance agent can easily address with the client that potentially makes a significant difference in car insurance premiums.

Establishing a regular schedule for client contact allows the car insurance agent to remain connected to their client. This has several benefits. The first is that it strengthens an agent’s role as trusted advisor and partner in helping the client reach his or her goals. Secondly, in establishing this, the client is more likely to reach out prior to making large financial decisions, such as the purchase of a new car, RV or motorcycle.

Opportunities for client education are limitless for the car insurance agency as well. For example, providing solutions for clients to drive less ‚ in turn reducing costs ‚ may involve providing transportation alternatives in the office, company website and new client packets. Transportation solutions that are offered by major employers in the area and communicating that to the client is a perfect example of client education that the car insurance agency may take to help reduce car insurance premiums for the client.

Exemplary customer service by car insurance agent and agency alike ensure client satisfaction, loyalty and referrals.

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