Auto Insurance Rates Rise and Aged Leads Provide Opportunity for Stagnant Sales

Auto Insurance Rates Rise

Auto Insurance Rates RiseAuto insurance rates are inching up, but sales are stagnating. So is it time to add aged auto insurance leads for your sales prospecting and cold calling routine? You betcha.

Aged auto leads provide a nice opportunity for agents that are struggling to compete on price. In this environment, customer service factors are weighing heavier on consumer buying decisions. For a prepared agent, this is a great opportunity.

Here’s the latest news and how to turn the situation to your advantage.

Report: Stagnant Sales and Modest Rate Increases

A new industry report from J.D. Power, the 2017 U.S. Insurance Shopping Study, paints a gloomy picture for auto insurers. For the second straight year, sales are stagnant. According to Insurance Journal:

This year sees a continuation of the slowdown in shopping activity that was first noted in 2016. Average premium rates have increased just 2-3 percent; customer acquisition rates are flat; new quote volume is flat, and the total number of insurance shoppers is largely unchanged from the last year.

In this scenario, carriers are fighting a tough battle against “commoditization.”

Browse and filter our inventory of prequalified aged auto insurance leads

The Industry’s at an Inflection Point

The analysis goes on to say that the industry is at an “inflection point,” a crossroads where customer patterns are on the verge of shifting. Obviously, carriers don’t want to be playing catch up to swings in customer behavior, so tactics are shifting now to stay in control.

That shift means three important things for agents:

  • Brand Reputation – Differentiating the carrier brand moves up in importance, as economics remove pricing incentives as a key tool. Agents, of course, play a big role in helping consumers form a positive impression of the brand.
  • Agent Recommendations – Carriers are relying even more on their agents, but so are customers. The report showed big increases in prospects relying on agent recommendations for carrier consideration and quotes.   
  • Price Still Trumps Brand – But even in this topsy-turvy world, insurance customers are looking at their bottom line, which means carriers have to do the same. A lower price somewhere else trumps past carrier brand experience, making great agent communication skills all the more important, since getting just the right coverage match often means just the right price.

Takeaways: An Opportunity for Aged Auto Insurance Leads

The big takeaway from this J.D. Power report is that agents take center stage in the current sales environment. This is a great opportunity for working with aged leads — prices aren’t moving much, quote volume isn’t moving much, and leads are looking for help buying the right amount of insurance for the best possible price.

Put your consultative sales skills to work with these leads:

  • Be Prepared – Know your script, understand your products, be ready for objections, and be ready to go when you pick up the phone.
  • Be a Problem Solver – Help your leads with their problem, not a product. Be on the lookout for hidden problems as well as stated needs.
  • Listen Actively – Ask the right questions, then shut up and listen. Remember, it’s the only way you have to help solve their problem.

For the foreseeable future, it’s up to agents to take the lead. Even in our current price and volume rut, there’s still sales to be had. The agents who pull ahead during this period are going to be the best consultative sellers working the most leads with a reliable lead source like aged leads.

Ready to get started with aged auto leads? Fill your pipeline with a fresh supply of high-quality 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, final expense, health, Medicare supplement or homeowners insurance, annuities, auto warranty coverage, mortgage refinance, or solar installation.

About Troy Wilson