How to Encourage Clients to Consider Additional Car Insurance Coverage

One key that most clients have in common is that they want to save money. They look for the best deals and the best discounts. Unfortunately, the cheapest deal isn’t always the best one. While it’s important to offer discounts and attempt to save your clients money, it’s also important that they understand the coverages available to them and the risk they face at not carrying additional coverages. Get additional Auto Insurance

Since this is the case, one of the best ways to appeal to clients with talking about paying more for more coverage is comparing the cost to the cost of an accident without said insurance.

For example, the average cost of property damage in a car accident is around $7,500. Without insurance, the driver could be expected to pay this all out of pocket, not including other expenses such as medical bills. On the other hand, comprehensive car insurance—which covers property damage—only costs an average of $136 a year, which is about $11.33. Less than $12 a month can save your clients from paying $7,500 or more for a single accident.

Medical bills are often more expensive than property damage costs. Nonfatal disabling injuries cost an average of $61,600 while the average cost of a death related to a car crash is around $1,130,000. Not only would the people involved in the accident be left to grieve, but they’d also be expected to pay huge amounts of money that not everyone simply has available. Liability insurance, which covers bodily injury, costs an average of $538.73 and covers the other driver and their passengers in an accident while personal injury protection (PIP) covers the insured client and their passengers, and costs between $2 and $37 a month.

Do They Need It? 

One of the other main questions that clients may have is, do they need additional coverage? Is basic coverage not enough? If your client is older with an old vehicle that would cost more to insure than to replace, you may have a hard time selling them additional coverages.

The primary target for additional coverages is typically young and middle-aged drivers who have money for additional coverages and are at higher risk of being in an accident. Young drivers are especially prone to car wrecks and don’t have thousands of dollars saved up to take care of related expenses. Teens between 16 and 19 years of age are three times likelier to be involved in a fatal motor vehicle crash than any other age group. Even if your clients believe they are careful drivers, they can’t control other people on the road. The average driver is involved in around 4 car accidents during their lifetime. It’s important to emphasize that basic coverage will not cover everything. Liability doesn’t compensate for damages to the client’s car or medical expenses for them and their passengers. They should understand the coverage options available to them and the dangers of not carrying the coverage.

Along with basic coverages such as comprehensive, collision and uninsured/underinsured motorist, you may also recommend: