Why Clients Are Dissatisfied With Auto Insurance And How To Cope

March 22, 2011

The cornerstone to any successful industry is to care about the customer.  The customer is king and thus must be kept happy – and nowhere is this more salient than in the insurance industry.  Since you work in sales, it’s important to be able to network well and interface with the client in a way that proves you responsible, knowledgeable, and receptive to their needs.

Of course, the customer is also notoriously hard to please.  The automotive insurance industry is finding this out the hard way – recently, many clients have decided that they were dissatisfied with their automotive insurance and are switching providers.

According to a study by J.D. Power and Associates, the current customer satisfaction rate when it comes to automotive insurance companies is at 777 out of a 1,000 point scale, which marks a ten point decline since last year.  The study itself took into consideration the following factors when it comes to selling auto insurance: price, policy offerings, and interaction.

J.D. Power and Associates as well as many other analysts have concluded that the major reason for the sudden dissatisfaction with the auto insurance industry has a lot to do with the recent stabilization of the market.  Since clients are feeling more in control of their financial assets and liabilities recently, they are also reassessing their needs and wants when it comes to automotive insurance.  And because the auto insurance industry is extremely competitive when it comes to offering discounts and deals, lots of clients are taking up competitors on their offerings and moving away from their original providers.

 

  • Get Weekly Sales Tips

  • This field is for validation purposes and should be left unchanged.

In addition, the stabilization of the economy has lead to incremental rises in premiums when it comes to automotive insurance.  These rises in premiums are also spurring customers on to looking elsewhere for their automotive insurance, since many companies advertise heavily and also offer attractive deals with lower premiums as compared to the packages that insurance buyers hold currently.

What does this mean for the automotive insurance agent?  Be sure to keep abreast of all facets of automotive insurance when you’re selling it.  This means keeping track of the advertising both your own company and competitors are doing and monitoring how effective the advertising is in getting clients.  It may be worthwhile to see if you can float some of your own deals around too, if you’re worried that glittery advertising may be getting the attention of some of your current clients.  Remember that if clients buy home and auto insurance from the same provider there are often inherent discounts in package deals, so make your clients aware of these discounts, too.

On the other hand, the sudden movement in the market could also mean that new clients may sway your way should you be offering something good – so a little bit of money and effort into advertising may pay off in the current environment!

About Troy Wilson