4 Reasons an Insurance Consumer May Decide to Purchase… Other Than Price

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All too often I hear producers say their clients only buy on price. But when producers sell on price alone, everyone loses. 

Agencies lose by risking adverse selection, which ultimately drives up their loss ratio.

Insureds lose because carriers that are underpriced are typically not the carriers that provide the best service. When it is time to submit a claim, great service can be the difference between getting the renewal and losing the client forever.

Below are four reasons, other than price, insurance shoppers consider when deciding where to purchase insurance.

The Ease 

Insurance shoppers want to make sure they get the best deal - Not only on price, but also on coverage. To do so, this involves shopping around.

To some consumers, the thought of comparing coverages from one company to another can be a daunting task. Due to this perception, many consumers are willing to take the risk of paying a little more so the process is hassle-free.

Time Saved 

The adage time is money has been around for years. But, today's consumers find more value in time than the consumers of yesteryear. In your agency marketing, let your prospects know buying a policy from you is easy and will not be a long, drawn out ordeal.

Peace of Mind

What is selling insurance really about? Helping your clients sleep better at night knowing if something happens, you have them covered.

Consumers want to know their needs are going to be met when determining who to purchase their policy through. So give them the appropriate knowledge to put them at ease. You are their adviser.

Easy to Compare 

Did you know 83 percent of online insurance shoppers obtain more than one quote before purchasing a policy? Make sure your prospects know you did the shopping for them and can offer them the best option. Make them feel secure, and explain to your prospects how you researched a number of companies on their behalf.


Do you know of other reasons besides price why consumers decide to purchase insurance from an agent? Let us know below in the comments.


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