Insurance Success

One of the most common questions is “Where can the cheapest insurance be found?”.  When considering insurance, a consumer needs to remember that the premium is not the only factor in the cost of a policy.  There are many other components of the total cost of insurance.  Some are very apparent, such as a deductible or co-payment.  However, some require a little more thought and understanding.  For example, car insurance may cost a certain amount per month and it may have a certain deductible, but what happens if an accident occurs?  If the coverage amounts are not adequate, the consumer ends up with hundreds…thousands…or even millions of dollars worth of bills, lawsuits, and other damages.  A well-informed consumer needs to think about the level of service they will receive after an accident, what they can expect from their agent / company, and whether saving a few dollars is worth giving up part of all of the above!

For an insurance agent, the never ending quest for the cheapest insurance can be detrimental to their business.  An agent must ensure that the actual policy is not the only thing that the client is buying into.  If a client buys solely on price, the relationship will be very short-lived.  Everything in sales comes down to Value and Price.  When the consumer interprets the value to be higher than the price, then they buy or stay with a company.  However, if the value is lower than or equal to the price…it will be very easy for a consumer to be swayed in a different direction.  Any successful agent must focus on building value.

Although there are many different things that build value in a consumer’s mind, the most important aspects are reliability, customer service / satisfaction, and integrity.  A consumer wants to feel reassured that if they do experience a problem, that it will not only be handled quickly…but that it will also be handled properly and to their satisfaction.  Above all, a client must feel that they are very important and that they will be treated as such.  When a relationship is built on more than price alone, an agent will be much more successful in retaining his business.

Although articles discussing best practices are quite easily found, sometimes it is better to focus on what not to do.  These points are by NO means all-inclusive, and I’m sure you can think of quite a few yourself.  However, these are probably the most critical mistakes that a new or seasoned agent can make.

 1. Don’t EVER Respond to a Question UNLESS You Know the Answer!

     As an Insurance Agent you are (or should be) a well-respected and trusted advisor.  YOU are the insurance expert, not your client nor your client’s family.  YOU have the proper training and the appropriate knowledge, and your clients expect you to know the answer.  It can be very uncomfortable to respond, “I don’t know…”  However, it will be even worse when you have to explain that their insurance policy really will not cover what they asked about and that you simply told them it would because you didn’t know any better.  A client will respect you a whole lot more if you simply explain to them that you do not want to guide them in the wrong direction, and that you need to call and get clarification.  In fact, this action will actually help you build trust in the eyes of the client.

2. Don’t EVER Compromise YOUR Ethics!

     Sales can be a tough business and sometimes you may be tempted to enter the gray area from time to time.  Don’t Do It!  No matter how badly you need the sale, and no matter how much pressure you are under…it is simply not worth it.  You are a trusted advisor and should be looking out for the best interests of each of your clients.  If you betray their trust, even once, you jeopardize your entire business.  Word of mouth advertising can be your best friend…OR your worst enemy.  Strive to do the right thing every time, and you will never have to “hide” from your clients if you see them in the grocery store.

3. Don’t EVER Stop Learning!

     As with any other field, insurance is an ever changing industry.  As a professional, it is your job to keep abreast of all upcoming changes, legislation, and products.  You are doing a great disservice to your clients if you are not an informed advisor.  Your clients trust you, so make sure you know that you are operating with the best possible knowledge base.

4. Don’t EVER Quit!

     Just like any other sales profession, insurance can be a very frustrating career.  However, it can also be very rewarding.  It is often said that it can either be the easiest hundred grand you’ll ever make, or the hardest thirty thousand you’ll ever make.  It takes a lot of work, and you have to be a very motivated individual to succeed.  If you focus on constant and continuous marketing and excellent customer service, your business will grow.  Look for mentors and stay plugged in, but DON’T EVER GIVE UP!