Selling car insurance to new drivers can lead to a long relationship that benefits both of you. Here are five tips to get started.
Selling car insurance to new drivers begins by educating them on why they need insurance in the first place. In most states, a minimum level of car insurance is required. And as a salesperson, a new driver represents an opportunity.
Many new drivers are young, so there is a good chance you’re talking to the drivers’ parents or guardians. This is where you can tailor your pitch to maximize sales potential. Let’s start with a few tips for selling car insurance directly to a new driver.
Discover 5 expert tips for selling car insurance to new drivers and their parents
Selling car insurance to new drivers and the parents of new drivers is an excellent opportunity for a salesperson. Here are some specific tips that can help.
1. Give Them the Basics
New drivers may need to be informed about car insurance, so it’s best to share the primary purposes of car insurance. However, they can be easily overwhelmed, so we recommend you practice a car insurance 101 talk for new drivers. Here is an example of some key talking points:
- Car insurance is essential because it protects drivers from financial liability in the event of an accident.
- Without car insurance, drivers would have to pay for damages out of their pockets, which could be very expensive.
- In addition, car insurance may provide additional coverage like medical expenses or theft of goods that were in the car.
2. Explain all of the Insurance Options Available
Once you’ve informed them why they need car insurance, it’s best to give them an overview of the available coverage types. Regarding car insurance, new drivers have many options to choose from. The kind of policy a new driver purchases will depend on what they plan to use their car for. For example, if they’re only going to use the vehicle for driving to and from school, they may not need as much coverage as someone who uses their car for work.
Practice your delivery. You want the person to have a clear understanding. You also don’t want to go so in-depth that you lose them and they cut the conversation short.
3. The Benefits of Bundling
Almost all new drivers will be able to save some money by bundling insurance. By bundling your car insurance with your home or renters insurance, you can save up to 20% on your premiums. When working with the guardian of a new driver, ask them questions about their car insurance policy:
- What company do you currently have for your car insurance?
- Do you have a homeowners or renters insurance policy with us?
- Are you interested in talking with one of the team members who do life insurance?
- Do you have any recreational vehicles or boats?
This should be done so that they realize they would be crazy not to bundle all of their policies with you.
4. Use the Emotions of a Parent
Parents and guardians want to protect their loved ones and lessen any financial burden that may occur if they are involved in an accident, so be sure to explore other car policy addons with them. For example:
- Gap insurance for leased or financed vehicles in case you default on payments
- Mechanical breakdown insurance in the event your car is less than reliable
- Emergency roadside assistance to prevent being stranded with a blown tire or dead battery
5. Don’t Forget About Referrals
One thing to remember, especially with new drivers who are young people, is referrals. Young people have many friends, so make sure you have a sweet incentive deal for anyone they refer. What types of referral incentives do you have? Have a conversation with your sales manager to find out. If they don’t exist, develop some specifically for new drivers.
Selling car insurance to new drivers can be a little tricky. Still, if you have the right mindset and can present all of the information clearly, you’ll be able to write more policies in no time.
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