Earn up to $2,000 with our referral program! LOGIN Call 844-707-8800 CONTACT SALES Success Stories Blog Agent Resources FAQ Webinars Contact Home» EverQuote Pro Blog» How To Sell Insurance When Your Carrier's Rates Are High How To Sell Insurance When Your Carrier's Rates Are High NOVEMBER 05, 2018 RON MASON, VP BUSINESS DEVELOPMENT Share One of the most common complaints we hear from agents is that their carriers’ high rates are negatively impacting their insurance sales. And while that may (in some cases) be a true statement, a successful insurance agent will never use it as an excuse to give up—they’ll instead find a way to either use it to their advantage or work around it. Curious how they do it? (And how you can do it, too?) In this article, we’ll provide some context you can use to understand high carrier rates and how to frame them to your prospects, as well as unpack a few insurance sales tips for working around it. Tip 1: Understand Why Carrier Rates May Be High Most carriers don’t want to be known as the most expensive option in the marketplace, so if they are, there’s likely a driver behind that which will eventually impact the entire industry. If you’re a captive agent faced with this scenario, it’s crucial that you provide your clients proper context and explain what’s going on with the larger industry picture. For example, back in 2016 after a year of heavy payouts and combined loss ratios of over 100% for many carriers, one national carrier escalated rates—with automobile insurance rate increases totaling $1.1 billion—in order to continue making a profit as they dealt with increasing losses across the board. And while it seemed this particular carrier was the exception, in reality, all the carriers eventually had to raise their rates; this company just happened to be the first to do it. Their increase was shocking compared to rates from other carriers—until those other carriers began to “catch up” with increases of their own. Tip 2: Price isn’t the only driving factor for all customers. The cost of insurance is the primary driver for customers about half of the time, so it is important. But it’s not the only factor they’re considering. Here’s what you can do to make sure your insurance sales strategies focus on the other 50% of what many consumers are thinking: Explain why your rates are increasing. When you explain the “rules of the game” to the customer—that most carriers will be matching your carrier’s seemingly high rates soon—you’ve opened a door of opportunity to explain the value your carrier provides. While not everyone will be receptive your explanation, statistically, about half of your prospects will be. These potential customers seem to respond to insurance agents who take time to share the context because it helps make sense of the situation. What do you say when an insurance lead objects to your sales call Instead of panicking, try the four sample scripts outlined in this guide. Become a resource for your consumer. By taking the time to educate, you forge a deeper level of connection with the consumer. You’re the bridge between them and the industry, and by helping them understand the rationale behind the pricing fluctuations, you identify yourself as their “helper.” There are no circumstances where people like to pay more, but by explaining what’s actually going on you can help them see the value they’ll get from your product. Speaking of value, know your value proposition. In the absence of value, any price is too expensive for insurance, so agents who don’t have a single value proposition won’t bind any policies. Take time to understand your differentiators, and then explain those key differences to your prospects. Provide a world-class experience. As I mentioned earlier, people aren’t buying your insurance products only for the price, but also for the experience your agency provides. If you can provide a better experience for them there are a lot of things you can do to become a personal advocate for them. Check out 12 Customer Retention Strategies In The Insurance Industry to learn a dozen best practices for retaining customers that are easy to implement. Don’t be an order-taker. If price is the only thing a prospect is considering, consider whether or not you’re the right agent for them. Agents who focus only on this aspect become order-takers, not value providers. Tip 3: Use Knowledge To Overcome Objections Most consumers don’t understand insurance, so in the absence of knowledge, they can only compare price. (Tweet This!) They need you to educate them in the ways that interest them. No longer are agents able to gain the upper hand by meeting prospects at their kitchen tables or strictly over the phone, so you have to find other ways to get and hold their attention. Fortunately, technology makes this possible. Agents who work hard and really get to know their customers can create a better experience to explain how price fits into the mechanics of their coverage; as a result, they have more prospects who are willing to buy. Tip 4: Use Your Resources Finding the right customer base is the critical first step in your insurance sales strategy, but doing it alone can be difficult. That’s where we come in. At EverQuote, we offer 100% organically generated leads—people who come to our website who are already looking for insurance products—and then we provide that lead information to agents like you – in real time as the consumer is shopping online. It works for thousands of agents (including top agents like Perry Olson), and it could be what helps your agency reach that next level of success. You can find out more about our process here. Topics: Insurance Sales, Featured About the Author Ron Mason, VP Business Development Ron has been at EverQuote since 2015 and brings over a decade of experience in the insurance industry to his role as VP of Business Development. He began his career as a life insurance Sales Rep, before moving into the insuretech world. Ron holds an M.B.A. from Liberty University. MOST RECENT ARTICLES An Agents Guide To Employee Retention Tax Credits With 2021 coming to a close, insurance agents –like many other small business owners in the... Read Article 10 Best Books For Insurance Agents In 2021 & Beyond Whether you’re new to the insurance industry or a decades-long veteran, one thing is certain: ... Read Article Warm Leads vs. Cold Leads: What’s the Difference? Every sale starts as a lead, but—as salespeople in every industry know—not all leads are the... Read Article 6 Hiring Tips from Independent Insurance Agency Leaders Hiring top talent is a crucial part of any business. With around 400,000 current insurance... Read Article Getting A License To Sell Car Insurance: The 6-Step Process Want to be a successful agency owner? Then your team needs to write a lot of policies. Want to... Read Article Why Gen Z Should Go Into Insurance As more members of Generation Z start transitioning into the workforce, there's one industry... Read Article Personal Lines Endorsement Checklists: Protection Against E&O Claims When natural disasters strike, it's inevitable that Errors & Omissions (E&O) claims will follow,... Read Article How To Increase Auto Insurance Sales: 9 Do’s & Don’ts Here’s a perennial hot topic for agents: how to increase auto insurance sales. Let’s face... Read Article Return to Home KAREN MARSH 12/16/2019, 9:06:05 PM I need cheeper car Insurance Reply to Karen Marsh NABIL CHAABAN 8/24/2020, 7:15:43 PM I’d like to know how much I have to pay and why it’s so exspencive WANDA THOMAS 10/7/2020, 10:28:43 PM I need cheaper insurance lol RICHARD THATCHER 2/4/2021, 5:33:31 AM I don't have a credit card or a home. I live in a senior home so lots of your questions do not apply to Your questions. DEBBIE BROWN 3/26/2020, 11:49:01 AM How to get refund for know DUI Reply to Debbie Brown JANET GRINDLE 4/1/2020, 4:21:53 PM Cheaper. Auto. Insurance PATIENCE BROWN 3/20/2021, 7:47:11 PM Hello JAMES MILES 6/19/2020, 9:56:34 PM How to get good fully insurance cheap Reply to James Miles JIM ZERFASS 1/18/2021, 1:45:27 AM I’m living in lL. And lm looking for better price for auto &home insurance STEVEN MCADAMS 7/24/2020, 4:09:25 PM need car quote Reply to steven mcadams LARRY. M. JOHNSON 8/23/2021, 6:42:53 PM Need cheap insurance on 2014 equinox and 2014 dodge 4 door MARTIN CRAWFORD 7/28/2020, 4:13:33 PM Want cheaper car insurance Reply to martin crawford JULIUS SHELTON 9/3/2020, 5:03:05 AM NEED QUOTE MARIN VALDEZ 10/20/2020, 1:54:42 AM Qutote MARTIN CRAWFORD 7/28/2020, 4:14:35 PM Want cheaper car insurance Reply to martin crawford ROBERT WASHINGTON 8/1/2020, 2:32:49 AM Looking for cheap insurance Reply to Robert Washington XUAN ZHANG 8/8/2020, 5:53:38 AM the most cheap car insurance Reply to Xuan Zhang XUAN ZHANG 8/8/2020, 5:54:27 AM need a car insurance Reply to Xuan Zhang ANNETTE CURRY 8/9/2020, 11:12:00 PM I would like to know about the cheapest one of all insurance Reply to ANNETTE CURRY JIM ZERFASS 1/18/2021, 1:47:28 AM Looking for cheaper auto and home insurance WM RUDE 8/26/2020, 12:09:39 AM looking for car insurance quote Reply to wm rude JOHN FRALEY 9/7/2020, 5:59:46 PM Need asap Reply to john fraley JOSEPH THOMAS 9/9/2020, 5:30:40 AM Great Reply to Joseph Thomas CATHY BUCHLER 10/6/2020, 10:29:44 PM Just investigateing Reply to Cathy Buchler WANDA THOMAS 10/7/2020, 10:29:39 PM Cheaper insurance Reply to Wanda Thomas WANDA THOMAS 10/7/2020, 10:30:21 PM Xxx Reply to Wanda Thomas SALLY SMITH 10/8/2020, 4:27:31 AM Comment Reply to sally smith JAMES ROLLIN 10/8/2020, 6:52:54 PM None Reply to James Rollin KAKA AKAKI 10/13/2020, 9:37:38 PM hhhh Reply to kaka akaki ALYSON HOWARD 10/16/2020, 11:09:03 AM Already have insurance Reply to Alyson Howard HATTIE BROWN 10/18/2020, 4:25:19 AM Need cash Reply to Hattie Brown JOHN POFF 1/5/2021, 3:04:09 AM Please phone me 7043653621 ASHLEY WILSON 10/27/2020, 4:55:40 AM None Reply to Ashley Wilson PENNY MCFALL 10/27/2020, 5:30:48 PM None Reply to Penny McFall PENNY MCFALL 10/27/2020, 5:31:45 PM None Reply to Penny McFall LATOYA LOVE 11/6/2020, 4:04:19 AM I need some insurance Reply to Latoya Love LATOYA LOVE 11/6/2020, 4:04:39 AM Need insurance Reply to Latoya Love MICHAEL DAVIS 12/10/2020, 3:54:45 AM needs insurance for me and my wife insurance for me and my wife DAN ROBINSON 11/11/2020, 8:38:53 AM i all ready have life insurence Reply to dan robinson VINCENT CARTER 11/16/2020, 6:40:20 AM I have life insurance already I have life insurance already Reply to Vincent Carter LORI BROWNING 12/8/2020, 12:07:56 PM I need cheaper Insurance/Senior/Disabilty/ less than 50miles a day Reply to Lori Browning MAX GARCIA 12/27/2020, 12:48:17 AM Hi Reply to Max Garcia ASIF IQBAL 12/28/2020, 9:09:01 PM Sign up this site and get 25$ dollars 💵 Reply to Asif Iqbal DR AUSTIN 1/5/2021, 12:35:09 AM Cpmp Reply to Dr Austin DR AUSTIN 1/5/2021, 12:35:37 AM Comprehensive cover Reply to Dr Austin ROBIN SMITH 1/5/2021, 4:02:04 AM I need insurance. Husbandblind I MUST Be Insu Reply to Robin Smith ROBIN SMITH 1/5/2021, 4:07:05 AM If not car, then life!! No joke!!! Reply to Robin Smith MINDY MERGEL 1/8/2021, 5:17:11 PM Helpb me claim assets please Reply to Mindy Mergel JANICE HOLMES 2/2/2021, 10:22:53 AM Call me 312-487-8342 ALEX PADILLA 1/16/2021, 8:13:08 PM My back ground check came back with criminal offense. What life insurance will except me? Reply to Alex Padilla JAMES ARMSTRONG 1/20/2021, 11:57:59 PM I have insurance Reply to James Armstrong JAMES ARMSTRONG 1/20/2021, 11:58:39 PM None Reply to James Armstrong GARY EDWARDS 1/21/2021, 11:50:07 PM Blessed is what I am Reply to GARY EDWARDS RICHARD THATCHER 2/4/2021, 5:37:52 AM My comment doesn't apply since i can not respond because a lot of the items do not apply With the sample answers do not cover all possible answers. So I guess I can not answer your question truthfully. Reply to Richard Thatcher YERICK RAMIREZ 2/13/2021, 9:36:04 PM Hi Reply to Yerick Ramirez SHATAVIA ROBERTSON 2/28/2021, 10:10:01 AM Imvu credits Reply to Shatavia robertson 1103523886 1103523886 3/10/2021, 6:05:49 AM 1103523886 Reply to 1103523886 1103523886 DALE ESPINOZA 3/23/2021, 6:47:48 AM https://learn.everquote.com/insurance-sales-tips Reply to Dale Espinoza DESIREE GALLOWAY 3/24/2021, 5:02:34 AM Galloway < Reply to Desiree Galloway CHRISTINA DUBE 3/29/2021, 12:20:09 PM Looking for covering my self Reply to Christina Dube MICHAEL SLATER 4/8/2021, 1:45:09 PM Silverado 4x4 Reply to Michael Slater محمد كيلاني 5/1/2021, 1:28:10 PM وشكرا Reply to محمد كيلاني DANIELLE RODRIGUEZ 5/10/2021, 11:33:23 PM Subscribe to the latest news and updates Reply to Danielle Rodriguez TIFFINE RUSSELL 6/14/2021, 5:50:36 PM Claim RC MINOR 6/15/2021, 6:40:48 AM They have some good routes l Reply to RC Minor DARRELL STEWART 6/19/2021, 9:53:20 AM looking for good insurance Reply to Darrell Stewart JAMES BARNES 7/17/2021, 8:09:32 PM Hi insurance Reply to James Barnes TAMI MANNING 8/10/2021, 7:53:42 AM Looking. For what I know I can get Reply to Tami Manning JAE EDWARDS 8/12/2021, 2:47:35 PM The best game ever Reply to Jae Edwards ANTHONY DIFALCO 8/13/2021, 10:32:19 AM Need of a low quote Reply to Anthony DiFalco VICENTE MAESTAS 9/8/2021, 3:03:55 AM i dont have a car Reply to vicente maestas YAHIR NEVAREZ 10/6/2021, 12:11:40 AM 2147150283 Reply to Yahir Nevarez MELVIN VINSON 10/13/2021, 11:43:10 PM I love helping a lot thank you Reply to Melvin Vinson MELVIN VINSON 10/13/2021, 11:45:24 PM I LOVE HELPING EVERONE Reply to Melvin Vinson EDMOND BIRDSONG 10/14/2021, 7:44:58 PM I hope this helps Reply to Edmond Birdsong ALLEN JONES 10/19/2021, 1:40:56 PM Help me to lower my monthly payment Reply to Allen Jones LINA SHOW 10/25/2021, 11:07:09 PM No comment Reply to Lina Show JEREMY HAMILTON 11/4/2021, 7:28:59 AM Like this Reply to Jeremy Hamilton BERNARD CHAVERS 11/10/2021, 4:43:25 PM Need insurance Reply to Bernard Chavers BERNARD CHAVERS 11/10/2021, 4:44:10 PM I need the car insurance Reply to Bernard Chavers First Name Last Name Email Website Comment NEXT ARTICLE Ready to see what partnering with EverQuote can do for you? Our representatives are standing by to help you succeed. Call 844-707-8800 Weekdays, 9AM-5PM (ET) Accelerate your growth. Complete the form below or just call 844-707-8800 to learn how we can help you achieve your goals. By checking this box, I confirm I am an insurance agent. By clicking "Get Started", I consent by electronic signature to being contacted by EverQuote, including by automatic telephone dialing and/or an artificial or prerecorded voice (including SMS and MMS - charges may apply), regarding EverQuote for Agents, even if my phone number is listed on a Do Not Call Registry. I also understand that my agreement to be contacted is not a condition of purchasing any goods or services, and that I may call (844) 707-8800 to speak with someone about EverQuote for Agents. By clicking "Get Started", I affirm that I have read and agree to this website’s Privacy Policy and Terms of Use, including the arbitration provision and the E-SIGN Consent. * Mandatory fields Home Terms of Use Privacy Policy Careers Contact