WEDNESDAY, SEPTEMBER 16, 2020
There are many drivers who will constantly look for ways to save money on their insurance policies, and car insurance is no different. Saving money is important, especially when jobs or industries are uncertain. It is important for insurance providers and agencies to remain in tune with their clients’ worries and needs to best offer the insurance they need.
Pushing Extra Coverage Can Steer Them Away
In some cases, offering extra coverage is harmless. But if your client has a habit of trying to save money or expresses concerns about spending too much, pushing too hard for extra coverages can steer away clients. This is especially true if the client already has full coverage car insurance. If anything, a client may want to reduce the amount of coverage in order to save money. Always remain aware of the client’s viewpoint as a consumer.
Recommend Different Coverage Limits and Deductibles
There are ways to manipulate coverage limits and deductibles in a way that can save clients money. If your client is tired of paying premiums, you may recommend that they raise their deductible in exchange for a lower monthly rate. Just make sure that they know that a higher deductible means they will pay more out of pocket if they have to file a claim.
Coverage limits can be changed to save some money each month, as well. If your client has an older vehicle, they may not need high limits on their comprehensive and collision coverages. Old vehicles that have depreciated in value typically need less coverage than new vehicles, as the older vehicle is no longer worth as much. In some cases, it may be cheaper for a driver to have only minimum car insurance requirements rather than full coverage.
Discounts to Offer Car Insurance Clients
One of the most basic ways for clients to save money is, of course, through offering discounts. Discounts can take off a certain amount of the client’s monthly premium so long as they qualify. Speak with your client to see if they qualify for discounts such as:
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Accident-Free Discount: If the driver has not had a single chargeable accident in the past three to five years, they are eligible for an accident-free discount. This encourages clients to drive safer so they may earn a discount.
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Affiliation Discount: Working with an entity such as an employer, school or membership can be beneficial to many insurance providers and agencies. Doing so brings in clients from that entity who desire an affiliation-related discount on car insurance.
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Defensive Driving Course Discount: Drivers may take a defensive driving course from the DMV in order to qualify for a discount. This also helps protect against accidents in the future by ensuring the driver knows proper driving and safety techniques on the road.
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Early Renewal Discount: If a driver renews their policy before the expiration date, a discount can be a great incentive.
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Good Driver Discount: Similar to an accident-free discount, a good driver discount chips off a percentage for drivers who have not had an at-fault accident within the past three to five years.
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Good Student Discount: For your younger clients, a good student discount can help save college students money. This is very important, as college students rarely have money to spare and are always looking for ways to save for textbooks, housing and more.
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Low Income Discount: This discount is a state mandated requirement available for drivers who fall below a certain income.
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Customer Loyalty Discount: Reward your loyal customers by offering a discount each year they remain with you without interruption in their policy. Many of these discounts build each year the driver remains with the insurance provider.
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Military Discount: Save military members and their families money on car insurance by offering a military discount.
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Paid in Full Discount: A driver paying their premiums in full guarantees the insurance provider will be paid, so a discount is often available as an incentive to do so.
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Senior Discount: Senior drivers are some of the most careful with their money. Offering a senior discount can help seniors worried about money make a decision on their policy.
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Low Mileage Discount: The less your client drives, the less likely they are to get in a wreck and file a claim. Discounts should be available for drivers who don’t frequently use their vehicle.
If you offer more than car insurance, such as home insurance and motorcycle insurance, ask if your client would like to bundle their home and auto insurance policies in order to save money.
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