You want your car insurance agency to make money. That means you won't want policies to go unsold. Thus, you'll have to determine which policies you should offer. Supply and demand are the rules of economics, after all. There are countless insurance options out there for drivers. Your agency can't offer all of them, but you can at least offer the ones that will sell. What are some of the ways you can determine what to do?
Keep the following factors in mind, and you'll often be able to choose better policies for your service. You can better make sure coverage sells.
State Coverage Requirements And Options
Every state has a variety of auto insurance laws. Most require drivers to carry minimum levels of coverage. Others might define the types of policies you can offer. They might allow you to offer certain types of auto insurance coverage, while requiring other forms of coverage.
Make every policy in your repertoire will apply to the regulations and laws of your state. Remember to inform your clients about these requirements when quoting their coverage. Also let them know if they can choose to waive certain coverage.
Of course, don't hesitate to offer policies that included expanded, optional coverage. Options might include collision, comprehensive and uninsured coverage.
Local Driving Risks
Every locality presents driving risks. Accidents, thefts and even weather phenomena might all impact local risks. Ensure that the policies you offer include common protection for local risks. For example, if hail occurs often in your area, offer policies that include glass coverage.
Your Target Audience
Do you target drivers of high-end vehicles? What about drivers who have SR-22 requirements or a tarnished driving record. Their insurance needs will likely vary. You should only offer these customers the coverage for which they qualify, and that they need. This might mean offering policies with higher limits, if it's in the best interest of the customer.
Auto insurance might not be the only coverage a driver needs. Some drivers might need commercial auto insurance rather than standard auto, for example. Others might need a trailer insurance policy for when they haul livestock or other items. Alongside your standard auto coverage offerings, you might want to offer additional policies. Doing so might help you increase your own profitability if customers rely on you for multiple lines of coverage.
With appropriate care, you can make sure the policies you offer your clients matches their needs.