A recent study reveals that the auto insurance industry in the US is growing at a rate of 1.9 percent annually since 2010.
Motor vehicle registration, according to studies, is the primary factor that affects the demand for auto insurance.
Here are the 8 simple ways to generate auto insurance leads:
- Getting Referrals
- Advertise in gasoline stations
- Coordinate with driving schools
- Be a member of your local auto club
- Make yourself known in the local community
- Social media advertising
- Advertise at drive-thrus
- Purchase leads
At present, there are 250 million registered cars in the country and the auto insurance market is split between the commercial market at 12 percent and the personal market, 88 percent. Statistics also reveal that there are about 1,000 cars for every insurance agent.
That is to say, while there exist a thousand potential leads available for each insurance agent, competition is very tough. Each insurance agent has to find a way to offer better value than competitors to get business.
Further, many of these vehicle owners choose to deal directly with insurance companies, rather than work with insurance agents or brokers.
For insurance agents, these are some suggested creative ways to generate those quality leads in the auto insurance market
1. Getting referrals is the one the best ways to get those quality leads.
It is important for you to connect with the right people who are able to bring you to people who need insurance.
You can partner with firms, particularly auto dealerships and servicing centers. Remember, people need insurance for every car that they buy.
Get connections with auto dealerships who can recommend you to their clients. The same is true for servicing centers. They can connect you with potential clients through their business.
2. Advertise in gasoline stations.
In the US, there are about 121,000 gasoline stations. Drivers visit gas stations at least once a week.
With a great number of these drivers visiting gas stations, advertising in these establishments increases your exposure to your potential market and may generate you with new leads from time to time.
Advertising in gas stations is less costly than advertising on other platforms. You can make use of flyers, posters and business cards.
You may even establish your own referral system by coordinating with people who work in gas stations and giving them incentives when they bring you good business.
3. Coordinate with driving schools.
It’s good to do business with driving schools because they can actually provide you with personal car insurance for their clients. New drivers can be a very good potential source of auto insurance leads because usually, they are owners or potential owners of new vehicles.
A good recommendation from the driving school or instructor can give you quality leads. Driving schools can even be your own clients. Driving instructor car insurance is a necessity for these driving schools. You can cater to this specific demand of driving schools.
4. Be a member of your local auto club.
Membership in an auto club allows you to connect with vehicle owners. Many of these owners own more than one vehicle with different insurance needs.
Most often, they are truly passionate about vehicles and car insurance is one of the most popular topics in their discussions.
Listen to their issues and try to offer genuine help. Later, you will just realize that you are actually generating those insurance leads that you need for your business.
5. Make yourself known in the local community.
Participate in events like local auto shows and even in events not directly related to vehicles like educational work and other community events. You can also set up local seminars and q and a session related to the auto insurance industry, for free.
These events may connect you to many people at one given time.
6. Do social media advertising.
You can very well utilize Twitter or Facebook to set up your own social media campaign. Experts say that many insurance referrals are made by family and friends, and often, these referrals are done online.
Allow yourself to be connected to your potential clients via social media. Have your own Facebook page or Twitter account so you can make your own advertisement.
At the same time, it will allow you to be easily reached by your target market. Entertain questions and try to offer genuine help when they make queries regarding auto insurance issues. All these, at exactly zero cost!
7. Advertise at drive-thrus.
This may not be a popular source of insurance leads for agents but remember, most of their clients are drivers.
Your competitors will rarely think of these areas as places to advertise and do business with. Primarily, you will have no competition in these places.
Establish partnerships with these establishments. Advertise. Distribute flyers and other materials to enable you to connect with potential clients.
8. Purchase leads.
It is less costly, but it really requires time. So if you want to cut through the process, you can purchase auto insurance leads from reputable companies. Such companies may connect you to high-intent consumers who are in need of auto insurance.
Generating quality auto insurance leads is indeed a challenge, but with some creativity and effort, it can be done.
Become an ASNOA Affiliate
If you’re looking to grow your insurance agency business, think about becoming an ASNOA Affiliate. With the ASNOA Advantage, you will have direct access to a “wish list” of national and regional carriers as well as profit-sharing without carrier minimums. ASNOA affiliates can be existing independent agencies, captive agents, direct writers or life/health and financial services agents looking to begin a new agency.