When you are dealing with client’s who have home’s you can offer your advice on how to best protect their asset. For auto clients we always need to establish where they are living (renting, condo, couch surfing) to make recommendations on how to best protect their personal belonging and liability. However, even the couch surfer should be alerted to the opportunity to improve their coverages. The goal is to become an educator to every client, even if you are only planting a seed for the future. In this blog we will review the best ways to recommend increases in auto coverages.
Waiver of Depreciation
Most people are shocked to hear that an accident with an almost brand new car doesn’t mean you’re getting a new car in the event of a total loss. This coverage allows the client to be insured for the purchase price or manufacturer’s suggested retail price if your vehicle is stolen or damaged beyond repair. For any client buying a new car you should recommend this and the next coverage.
GAP protection is similar to Waiver of Depreciation but this coverage steps in to pay the difference between the cash value of the vehicle and the outstanding balance of your loan or lease. While this coverage is generally placed on when the vehicle is purchased, it can be for a new or used vehicle. Depreciation occurs the second a vehicle is driven off the lot. Many people don’t realize that if your car is totaled and the value of the vehicle is less than your loan, you will still be paying that loan without having a vehicle to drive!
Since you are purchasing a vehicle we always want to review and recommend a few coverages for your considerations. It appears you will have a loan on the vehicle. As you are aware vehicles depreciate quickly from the time of purchase. We can make sure you are protected for your loan amount and purchase price of the vehicle for X per month. Wouldn’t you agree we should add that on?
Rental Car Coverage/Transportation Replacement
When you look online at carrier reviews the negative ones often are centered around the assumption of rental car coverage. When someone is in a claims situation they are often stressed to the max. Adding to the stress is often the question “How do I get to work?” Rental car coverage is something that should be offered routinely! Remember, when people change vehicles this is one thing that should be offered.
In reviewing your account I realized you don’t have rental car coverage. If you are in an accident currently you would have no rental car coverage. However, for X per month we can add that on and protect you. I’m sure you don’t want the added stress of transportation coordination and costs. Wouldn’t you agree we should add that on?
Use of Recreational Vehicles By Unlicensed Operators
If your client has some toys this is one endorsement you want to connect with them on. For many families they may be teaching their 15 year old to snowmobile or their 14 year old to handle and ATV. Unfortunately, without this endorsement they aren’t covered.
Study Up on Your Carriers’ Packages
Carriers have worked to create some pretty cool tiers or packages for endorsements. As an agent it’s important you learn that information and study it. Often times these packages provide the most bang for your client’s buck and provide a great deal of value! The carriers have also done a great job naming the packages to seem exclusive and valuable. Wouldn’t everyone like to be a platinum client?
One thing I wanted to mention to you was a new package your carrier has just released. It’s really an incredible opportunity. We can add on X, Y, Z all for $ per month. This provides you top tier protection all at a great value. Wouldn’t you agree we should add that on?
Increasing Auto Insurance Limits
Many client’s simply don’t understand how auto insurance works. Everyone assumes they have full coverage, but the truth is many people are wildly under-insured. As an agent, the ethical thing to do is to make recommendations to them on how to improve their coverage at least to the agency standards:
Currently you a bit under insured based on our agency’s standards. We always recommend that homeowners have auto liability limits of 250/500 to protect their wages and assets. What this means for you is if the limits of your home or auto policy were reached you would be personally responsible for the amount over your policy. Increasing your auto policy is XXX per month. I wanted to make sure you knew these options existed. Unfortunately people sue at a much greater rate today and everything from medical bills to car repairs are more expensive. For X per month I recommend we add that on to protect what you work hard for.
Stacking the Deck In Your Favor
When you discuss increases with clients it’s a great opportunity to review their entire account. We are big believers in calling every client annually for an account review (If you need some assistance getting this started check out our AppX Retention Program). When you are prepared you can better advise clients! We recommend quoting the increase on the phone or before you connect with them so you have the numbers handy. You can easily score increases when the following occur:
- New home purchase
- Account Review
- Inbound calls by taking a moment to review their account
Remember, making recommendations is great for E&O purposes and helps educate the client. You become their trusted adviser rather than the person that talks about rate all the time!