As an insurance agent, you know that insurance coverage is important for your clients. The reason is simple: it protects them from various kinds of damage, such as damage to or theft of their car. However, as an independent insurance agent, you are likely to face stiff competition in the industry. So, if you would like to make money fast as an insurance agent, it is important to know what the most profitable insurance policy to sell is.
To offset or overcome the competition in the insurance industry, you would like to employ various tricks and techniques that can help you stay ahead of your competition and outperform other insurance companies and insurance agents. And one of the most effective ways to achieve this is to leverage the principle of supply and demand.
This means that you should give your clients what they want. If you do that, you will not need to spend so much energy and time trying to convince your clients to buy.
To ensure you are giving your clients what they want, the following are some of the most profitable insurance policies to sell if you are an insurance agent.
The Most Profitable Insurance to Sell
Auto Insurance
It should not come as a big surprise that auto insurance is the best selling and most profitable insurance product. You probably know that there are a huge number of car owners in the country with the numbers increasing each day. In the US, it is mandatory for every car owner to buy an insurance cover in order to protect other motorists from accidents and injuries. This makes automobile insurance a very popular insurance product to sell.
You can monitor the trends and patterns in your area and determine who the potential car buyers are. It can be college students who are about to graduate or new employees. And that is not all; you can also contact new entrepreneurs and freight companies. These companies and business owners are likely to add a new vehicle to their fleet and will require car insurance coverage.
Also, keep in mind that car dealerships may also refer some of their valuable clients to you, so you should stay in touch.
Home Insurance
This is another popular type of insurance. Property insurance is an insurance policy that covers any damage or loss to your clients’ house. Note that it also provides responsible coverage for various accidents that can happen in a person’s home.
Property or home insurance typically covers anything that can pose a risk to your clients’ property like theft, flood, fire, and inclement weather. Keep in mind that there are other types of coverage that you can sell. This will depend on your location. For example, in areas that are prone to hurricanes, you can sell a policy that explicitly covers that calamity. These disasters are one of the reasons home insurance is also one of the best-selling insurance types.
Health Insurance
Health insurance or life insurance covers for your clients’ full or partial medical costs, such as inpatient care, in case they fall ill. Some of the items covered include consultation fees, drugs, surgeries, and routine checkups. As health insurance is a legal requirement in many states and even occupations, it makes this type of insurance a popular choice.
To make the most of it, you can target business owners, particularly new business owners, with workers as many of them would shop for health insurance coverage for their staff.
Did you know that seven out of ten employers in the casual and formal sector require a person to have adequate health coverage before working with them? This makes it one of the most profitable and best-selling types of insurance.
How to Start Selling Auto Insurance
You may know that selling auto insurance requires a casualty and property insurance license. Insurance licenses are also state-specific with specific licensing requirements and rules that each state’s department of insurance maintains.
You will also have to meet all the course-hour requirements and then pass your exam. And it is worth noting that a majority of states have a minimum age requirement of eighteen years. And if you want to sell insurance and learn how to be effective in selling auto insurance, one of the most important steps is to think like a buyer before trying to sell auto insurance to your clients.
For instance, if you would like to sell a final expense policy, you may want to emphasize the relief your client’s children will feel knowing that the funeral costs are already covered.
State Department Requirements
You probably know that state entities govern insurance and requirements usually vary from one state to another. This is why you should check with the state department of insurance in order to know the number of pre-licensing education hours that you need, the examination basics, as well as the registration fee for the state
Complete Your Pre-Licensing Coursework
You can complete your pre-licensing course work either online or in a classroom setting. You also have to find a pre-approved vendor and then attend all hours in order to be eligible for licensing. If you take an online course to complete the coursework, the program will monitor your progress.
Pass the Exam
Note that every state, such as California, has its own exam. So, you are obligated to meet the state’s minimum requirements. You can give the proctored exams at various test centers. It is advisable to prepare for your exam by taking practice exams that your pre-licensing provider has issued.
Contact Insurance Agencies to Sell Auto Insurance
After completing your application, pre-licensing process, and background check as well as passing the exam, you may contact insurance agencies in order to be “appointed”. The term appointed means you have permission to sell their insurance products.
And it is important to know the type of insurance agent that you would like to be. For example, a captive insurance agent typically sells only one insurance company’s product. On the other hand, brokers sell insurance from several companies.
Tips on Selling Insurance Policies Fast
Whether you sell auto insurance, life insurance, or mortgage protection, the goal is often the same: grow your leads and increase sales. Here are some tips that every insurance agent should know in order to close more sales.
Do not Sell Products, Provide Solutions
Don’t make the mistake of jumping into your sales pitch about the excellent discounts that your agency offers on different insurance plans. Instead, explain to your prospects how what you’re offering will help solve a problem they are currently facing or a potential problem. Note that people are more likely to buy products and services that resolve problems and offer them some peace of mind.
Listen Attentively
If you are a young and ambitious insurance agent, you would like to show your knowledge whenever you get the chance. However, note that as most experienced insurance agents will tell you, sometimes it is more important to listen to your clients than to speak.
So, give your clients your undivided attention and make sure that you know the right answer to the question before you answer. And if you do not know the answer, do not pretend. In these cases, it is better to inform them that you do not know, but you are taking notes. And you will find the answer, and let them know soon.
Make the Most of Networking Opportunities
Take full advantage of the amazing opportunity to attend conferences, trade shows, and meetings, and start networking with other insurance agents and professionals in your field. Note that these are ideal places to make connections, stay updated on industry trends, and learn from respected industry leaders.
