Auto Insurance Costs Rising and Aged Leads Provide Prime Opportunity

January 18, 2017
Auto Insurance Costs

Auto Insurance CostsQuick — what’s the going rate for auto insurance in your state? How about neighboring states? The answer? Probably too high. Aged auto insurance leads provide a prime opportunity in such an environment, where auto insurance legislation is beginning to interest more state legislatures.

It’s late January, just after a major election, and across the country, new state legislators are taking their oaths of office and getting ready to address the needs of their constituents. For some, that may involve new laws that affect state auto insurance requirements, conditions, and costs. And for agents working auto insurance leads — especially aged leads — this is a great opportunity.

Here’s a look at one state’s auto insurance case study and how it might inform your aged lead business strategy.

Insurance Is Through the Roof in Michigan

MLive.com sets the scene:

Rep. Beau LaFave represents the Western Upper Peninsula, but driving around his district you might confuse it for Wisconsin.

“Upward of a third of my constituents have license plates on their vehicle that say ‘Wisconsin,'” said LaFave, R-Iron Mountain, in a profile interview with MLive.

He’s one of several freshman representatives who listed changes to the state’s no-fault auto insurance laws as being among their top priorities as they take their seats in Lansing.

This article goes on to say that Michigan has the most expensive auto insurance in the country — $2,738 on average for 2016. By comparison, comparable insurance in neighboring Wisconsin cost only $912. According to this story, it seems like some residents are using addresses of friends or family next door to save on insurance. However, that’s not the worst of it:

Rep. Kim LaSata, R-Benton Harbor, said the overall high cost of auto insurance in Michigan prevented some Michiganders from purchasing insurance at all.

“There are people out there that just can’t afford it. It’s not that they don’t want to abide by the law, they just don’t have the money,” LaSata said.

Some other folks are risking it by going without insurance. Not good.

However, the pressure is on Michigan lawmakers to fix accessibility, compliance, policy, and costs. Many seem to be ready to tackle it. And if they do, insurance rates for Michiganders may drop.

That would be a good opportunity for aged leads who requested a quote before all this took place. You may be able to save those folks more money. You may be able to get uninsured motorists proper coverage. And you may even be able to sell some clients on more comprehensive coverage if costs come down.

This Is a Prime Opportunity for Aged Lead Sales

Michigan here is one example. But many states will be looking at making changes to legislation. There is likely an opportunity for agents in many states in many different parts of the country. An auto insurance agent’s job the next few months should be to closely watch for legislation that could affect the industry. Ask yourself the important questions.

  • Will it help your current customers?
  • Can I target a new pool of leads affected by changes?
  • Can I help leads and current clients get better coverage? And how?

Use the answers to formulate a strategy to help your customers, while also growing your business. I have three tips to get you there.

Educate Leads

Remember that not all leads are experts on car ownership, the insurance marketplace, and especially, the latest government changes to the auto insurance industry. Use your position as an agent to educate these leads on what they need to know. There are many ways to accomplish this. Reach out to web leads with drip email campaigns or send them to a lead magnet form or microsite where they can opt in if they want to know more. For cold calling leads, be prepared with scripts that outline what’s most important and what’s new that many leads may be unaware of.

Ask the Right Questions

When you speak to leads on the phone or in person, remember that a big part of the job is asking questions that will move your prospect towards a sale. When it comes to auto leads that may be uninsured, underinsured, or paying too much, you want to know so you can help. Frame your questions to qualify warm leads where appropriate.

Target the Right Needs

Lastly, make sure your sales approach targets the needs of your auto insurance leads. All the basics apply: ask open-ended questions, let the lead do most of the talking, listen carefully. When you understand what needs are important to your lead, then you can move forward with the sale.

This is an interesting time in government, and there are sure to be changes coming for some auto insurance legislation. Stay informed, think about your strategy, prepare your scripts and email campaigns, and get ready to grow your business.

Shift your auto insurance sales prospecting into high gear with a fresh supply of high-quality aged insurance leads from The Aged Lead Store. You’ll find thousands of sortable aged leads, ready to boost your sales, whether your business is auto, life, health, Medicare supplement or homeowners insurance, annuities, auto warranty coverage, mortgage refinance, or solar installation.

About Troy Wilson