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Prospecting: Auto Insurance Leads Need a Mythbuster

Troy Wilson
By Troy Wilson
Prospecting: Auto Insurance Leads Need a Mythbuster Feature Image
5 minute read
⚠️ Disclaimer: While every effort has been made to ensure that the information contained in this article is accurate, neither its authors nor Aged Lead Store accepts responsibility for any errors or omissions. The content of this article is for general information only, and is not intended to constitute or be relied upon as legal advice.

auto insurance leadsEveryone buys car insurance at some point in their lives. It’s a ubiquitous product. But far too many auto insurance leads make assumptions, misunderstand terms, and misinterpret their coverage. It causes problems for customers, insurers, and salespeople. What these aged leads need is a mythbuster. That’s where you come in.

When you’re prospecting auto leads, whether it’s in your cold calling sales scripts, your emails, or your website information, make sure you address these myths.

Colors Don’t Cost More or Less

A particular red sports car may have a history of costlier or more numerous claims than a particular white minivan or even a blue sports car. This filters out to the masses as a red car means a higher premium. Or a white car means a lower one.

Your leads need to know the truth. Educate them about how insurers base rates on safety features, vehicle replacement cost, and repair costs. These factors vary depending on the make and model. Some vehicles just cost more to insure. It’s important to answer these questions of cost during the sales process so that customers understand why their rate is what it is.

Policies Can’t Be Canceled Without Notice or Reason

Some consumers believe car insurance isn’t a reliable product, that it can be canceled out from under them without cause and without notice. This leads to a reluctance to buy as much coverage as they need, which could turn into a self-fulfilling prophecy if they ever needed coverage they didn’t buy.

Break the cycle of disappointment for these insurance buyers with some buyer education. Reassure prospects that regulations prevent an insurer from cancelling a policy in the middle of a term without just cause, such as fraud or non-payment. And encourage them to buy the amount of coverage they need, outlining exactly what that will cover and what it won’t.

Personal Policies Don’t Cover Business Use Losses

Many auto insurance buyers have trouble understanding the limits of the policies they buy. While a few may underestimate, the more serious problem is when customers overestimate how much their policy covers.

Policyholders that drive for a pizza delivery service, haul supplies for work, or otherwise use their car for a business wouldn’t be covered by a personal coverage policy. It’s important to ask aged leads how they use their car, so that they can be adequately covered.

Aged Leads Misinterpret No-Fault Insurance

No-fault auto insurance is sometimes misinterpreted by customers as meaning that the policyholder is never considered at fault for causing an accident. The failure to understand such terms can lead to challenges for insurers and problems for customers.

While no-fault coverage lets parties tap benefits for immediate medical needs, insurance companies will eventually decide who was at fault for an accident. That policyholder’s premium may go up. Salespeople should help prospects understand that carelessness could lead to higher premiums down the road.

Coverage Follows the Car

On the other hand, prospects should understand that personal auto coverage generally follows the car. If a friend borrows your customer’s car and wrecks it, an insurance claim will most likely go through the customer’s insurance — not necessarily the driver’s policy.

This is yet another common myth about the nature of car insurance. Agents should be aware such myths exist and work to put them to rest in sales conversations with prospects and in insurance info packets.

A Ticket Doesn’t Have to Mean a Steep Premium Hike

It’s certainly desirable to avoid traffic tickets, but insurance leads should be more educated what a ticket means and what it doesn’t. For the average policyholder, a ticket may not mean an increase in their insurance rate if they have an otherwise clean driving record. However, there’s also an opportunity to upsell leads who are concerned about rate hikes for traffic tickets or fender benders with an “accident forgiveness” add-on. For insurers who offer it, this add-on could give piece of mind to worried customers that a minor mistake won’t cost them down the line.

More Customers May Need Comprehensive Coverage

Some insurance customers mistakenly believe a basic level of coverage is enough, when it isn’t. A customer with an older vehicle may think it’s undesirable to thieves. However, a popular and reliable make and model may be just as attractive to thieves as they are to consumers. Prospects that live in areas prone to natural disasters, vandalism, or accidents involving wildlife may be unaware that comprehensive coverage is important to fully protect their vehicle. An agent’s job should be to assess each prospect’s individual circumstances and needs and recommend matching coverage.

Many salespeople do a great job with their customers, helping them get and keep the coverage they need. Yet everyday, new customers come into the insurance marketplace, and not all are well informed. Make a point of clarifying the auto insurance world for your customers by becoming a mythbuster. Your prospects will be happy to have good information that could save them money or problems down the road.

Start mythbusting with a fresh supply of high-quality aged 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, or home insurance, mortgage refinance, or solar installation.

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Troy Wilson

About Troy Wilson

Troy is the CEO and founder of Aged Lead Store. He has been in the lead generation industry for over two decades. His blog posts focus on how to refine your sales process and get the most out of your insurance leads, mortgage leads, and solar leads.

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