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

September 30, 2014 AnMarie Bozick, CIC

couple on laptop

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.

  1. 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.

  2. 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.

  4. 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.

  5. Peace of Mind - Helping your clients sleep better at night knowing if something happens, you have them covered is really what selling insurance is all about! Consumers want to know that their needs are going to be met when they are determining who to purchase their policy through, so give them the appropriate knowledge to put them at ease.

  6. Easy to Compare - 83% of online insurance shoppers obtain more than one quote before purchasing a policy. Make sure your prospects know you have done the shopping for them and will offer them the best option. Make them feel secure, and explain to your prospects how you have 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.



About the Author

AnMarie Bozick, CIC

AnMarie Bozick, CIC, manages ITC’s rating products, including TurboRater and TurboRater for Websites. She has more than 20 years of property and casualty insurance experience, including owning her own agency and serving as president of the Alliance of Insurance Agents of Texas. She joined ITC in 2008.

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