Save them $700 or $1,300

[insurance1822]

We're an Indy agent focusing primarily on personal lines that's all referral business from lenders/realtors. Due to our carrier representation, we're many times we're running into situations where we can save people a few hundred...or into the thousands. Not always that significant, but it points to the question..

If you know the person is going to switch, would you go w/ the carrier saving $1,300 or the carrier saving $700. We have a few competitive regionals that pay less then some nationals...but my stance has always been do what's best for the client. If the cheaper company can't offer a coverage the client may need...then we move on.

I know some agents who go w/ the smaller savings to the client & increased agency revenue. I just feel that's wrong to both the client & the referral source sending them. God forbid the referral finds out you did something outside the clients best interest..you risk the relationship. That being said, if I took the hardline approach and presented the more expensive carrier (but still saving them tons) my agency would be 30% bigger!!!!!

You always run the risk of that person shopping you (even though most referrals don't) and maybe their incumbent just so happens to be competitive & you lose the business.

For me...it's a tough one.

 

[FL P&C Broker]

The best possible price with the best possible company will lead to less service work down the road.

 

[RFMaurone]

ALWAYS do what is right/best for the client. Do you ask for referrals ? That will make up the 30% you mentioned.

 

[shawnmwalker]

Ins1822,

What if the Lowest rate is with a carrier who just cut commission? You had another thread on that topic.

Sell best rate for the client or send a clear message to the carrier you won't sell a product with a commission too low to protect your long tern interest.


The Original question is VERY valid. Save them good money with lowest priced product or save them good money with and earn a bit more. I am excited to see what the consensus is.

 

[F150]

who is to say, you are the only agent they called? maybe they called another and guess what, they are quoting the company that is $1300 less, and you are quoting the company that is $700 less.....ooopsie....

 

[djs]

My answer is simpler, present both, explain the difference, let them decide.

There are likely a few benefits to the higher premium policy which you can use to sell it. Even a name brand is worth the difference to some clients.

If they chose, you are the hero, if you chose, based on your pocketbook, you are the slime, at least if they find out later that they could have saved some additional $$$$

Dan

 

[shawnmwalker]

Dan is on to something. Present both and let client decide. I always asked the agent to present both the best product and the best price. And try to SELL the best product.

 

[EugeneM]

ALWAYS do what is right/best for the client. Do you ask for referrals ? That will make up the 30% you mentioned.

If you know your doing the best thing for the client you should feel absolutely right asking for a referral. Your shooting yourself in the leg if you are not.