Home/Auto Rate Increases? Talk to Your Customers BEFORE The Rate Hikes Hit!

If you’ve been following insurance news – or if you work for State Farm – you’ve probably heard that home and auto insurance rates in California are in the process of experiencing a massive rate increase – as much as 20% per customer. Other insurance carriers are likely soon to follow.

Have you contacted them?

Part of being a successful agent is making sure that your customers know that you’re looking out for their needs. These rate increases can hit budgets hard. Many customers are going to open a letter by State Farm and experience shock and concern over the effects these rate increases may have on their finances.

When they experience a rate increase like this, the first thing they’re going to do is find out if there is a cheaper option, and – if you’re not in contact with them – they may not call you about that option or feel like you’re someone that can help them.

That is why it is so important to be ahead of the game. By contacting the customers affected by the rate increase early, you can:

  • Explain why the rate increases are happening.
  • See if there are any other options.
  • Make sure that they feel understood.

Your customer will be less likely to feel like they’ve been squeezed, they will be less likely to blame you for the price increase. If they were thinking about shopping around, you are in a better position to save the sale and keep yourself as their primary contact.

Maintaining the Relationship With Your Clients

State Farm may be the ones raising their rates for now, but this is one of many examples that show that the best agents – and the most profitable ones – are the ones that know how to maintain those relationships. Staying ahead of news, staying ahead of rate changes, and staying in contact with your customers is what will help you keep your commissions, obtain repeat business, and receive more referrals in the future.

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