Some sources predict auto insurance rates will remain high throughout 2024. This is due to many reasons, like inflation, rising repair costs, and higher labor rates. This is unwelcome news for many consumers who were likely hoping for a break next year. Auto insurance challenges, like high premiums and reduced capacity, are affecting many consumers.
As their insurance agent, your policyholders may look to you to understand their high rates and for help in lowering their costs. Learn ways to help your insured manage auto insurance challenges.
Consumers Struggle With Auto Insurance Challenges
In many states, consumers have faced rising premiums and challenges in securing coverage over the last few years. These issues have affected both the personal auto and property markets across the country. As an agent, you may be fielding more calls and questions than usual from concerned policyholders.
One way to help your insureds with their auto insurance challenges is by keeping open communication throughout the year. Limiting your communications to renewal season only may cause your customers to shop around for other options when they have questions. By communicating often, you can provide information before your customer needs it and be proactive to help them with concerns.
Here are some other ways to help your policyholders through their auto insurance challenges:
- Educate consumers. Provide details about rate and market changes throughout the year. Answer their questions and offer information when it seems relevant. Become an expert in your area and find ways to help your policyholders.
- Provide alternative quotes. Search for alternative quotes for your policyholders at renewal time and during the year if they request it. If your customer has been with their current insurer for some time they may not be getting the most competitive rate. Shopping around has long been one of the best ways to ensure that insureds find the best rate.
- Find creative solutions. Help your policyholders find discounts with their current insurance company or another one they might switch to. Talk about telematics programs and explain how sharing data to prove to the insurer they are a safe driver may result in a discount. Make sure all the discounts your policyholder can get are applied to their policy.
- Explain how the industry determines rates. Sometimes people become upset when they don’t understand how insurers have calculated their rate — but once you explain the math, they may feel better about the expense. If your insured has any at-fault accidents or tickets, you can talk about when those fall off their account in your state. If taking a driver’s safety course could help lower their costs, share information about programs in your area or online ones offered at convenient times. If their premium has increased because of an expensive new car or a listed driver with many violations, you can point out those costs.
- Discuss coverage options. Show your customers the premium differences they may see when changing their coverage. For example, a higher deductible could be worth it for some consumers when they see lower premium payments. Be sure to explain coverage limits and advise your policyholders accordingly since lowering limits may not be advisable in many cases.
Stay Educated With Resources From the American Agents Alliance
Be sure to stay on top of trends and changes in the industry so you can offer the best guidance to your customers. The American Agents Alliance publishes a blog with timely information you can access any time you need to learn about a topic important to agents and brokers.
Become a member today and see how we empower independent agents and brokers to thrive!
External Links:
- https://www.forbes.com/advisor/car-insurance/auto-insurance-outlook-2024/#:~:text=Rising%20accident%20rates%20and%20accident,claim%20cost%20increased%20by%2040%25.
- https://www.propertycasualty360.com/2022/08/15/3-reasons-why-successful-agents-maintain-ongoing-policyholder-communications/?slreturn=20231009071046
- https://content.naic.org/consumer/auto-insurance.htm
