How to make money with car insurance? Profit even during the pandemic

Want to know how to make money with insurance? In this article, we've put together some tips that will help boost your sales!

Working as an insurance broker is indeed a very attractive business. The potential for making money with insurance is enormous, especially if we consider the performance of the Brazilian insurance market.

To give you an idea, between January and November 2020, the insurance sector registered an increase of 4.9%, earning R$ 112.2 billion. In other words, there is no shortage of business opportunities and potential customers seeking these services.

But it is clear that there is no point in investing in a promising market if you do not adopt strategies and practices that can contribute to good revenue.

Thus, there are basic tips that are easy to put into practice that can improve your business even further. Keep reading!

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What is the average profit for those who sell car insurance?

The insurance market is expanding, precisely because of the type of service it offers. This is because insurance sells protection, which can bring much more peace of mind to the daily lives of those who use it.

Furthermore, we must consider a broad audience that needs this car protection. After all, in 2020 they were sold around 1.95 million vehicles light in Brazil.

At the same time, the average car insurance commission in the country is 20%. Therefore, if we combine the sales chances that the market offers, plus the average market remuneration, we see that it is possible to make money with car insurance.

However, to reach this average, and even surpass it, you need to be very focused on your brokerage work.

7 tips to always make money with car insurance

You need to prepare and put into practice the recommendations that will help you increase your sales with car insurance. So, check out the tips we’ve put together below.

1. Know the insurance you sell well

It may seem silly, but the first step to making money with car insurance is to thoroughly understand the services you sell. This is because, when you know your services well, you can build good arguments to sell them.

Therefore, it is necessary to keep in mind that each client has a specific profile and need. To make a sale you need to know how to talk to each person. In this sense, you must know your services to show what is attractive to each person.

In other words, when providing a service, avoid making a very generic presentation. Try to present positive points of the service for each customer demand.

To this end, it is also important to listen to what the customer is looking for, such as the types of coverage, how the vehicle is used and ability to pay.

Thus, by knowing your service well, you can make a more attractive and convincing presentation.

Therefore, don’t be “lazy” to research the service you offer. Understand its details and details and know possible variables that may be important when selling it.

2. Marketing your work well

Another fundamental step to making money with auto insurance is to invest in a good marketing strategy. After all, for people to be aware of what you offer, you need to promote quality.

This way, it is possible to take advantage of the opportunities that the online environment offers. You can, for example, invest in social media, producing interesting content for your followers.

At the same time, you can use other digital marketing practices, such as email marketing. This makes it possible to maintain a closer relationship with customers.

Additionally, it’s worth thinking about word of mouth. So, talk to people and show that you have something of value to offer.

Satisfied customers directly contribute to this step. They will be able to recommend your services to friends and family. Therefore, it is essential to ensure good service.

Loyalty plans can also be an interesting proposal. They are even gaining ground in the insurance market. Through them, you can encourage your customers to bring more referrals that can increase your business chances.

3. Seek help from other professionals

To make money with car insurance, it is essential that you dedicate yourself to your activities. So, counting on the help of partners and supporters can also be ideal.

Firstly, you can contact the insurers with which it works to seek more attractive conditions. This way, you will be able to have more options to negotiate with customers and make good sales.

But if you are a broker who works with a franchise, you can seek help from your own franchisor. With the strength of the brand and many partnerships, it will probably be able to find interesting alternatives.

In fact, this is related to the advantages of franchises. This is because these companies usually offer training, a wide catalog of services and various supports that contribute to your day-to-day work.

Likewise, you can create a partnership system with local companies that work with cars, such as cleaning companies. For example: to buy insurancethe customer can gain a benefit from the partner company.

4. Sell benefits, not insurance

When providing a service, it is essential that the broker understands what the customer needs. After all, far beyond simple insurance, it is the benefits of that service that will win over your audience.

This is because people don't just look for products and services when they are going to consume something. They are also looking for the experiences that that product can bring.

And when we talk about insurance, this would be no different. To the hire protection for a vehicleyour customer will prefer the alternative that will bring them more benefits.

Therefore, when presenting a service, you must be prepared to find the most advantageous options that fit your audience's expectations.

Don't forget that insurance aims to protect the car or person. As well as making life easier for the insured when they are facing an unusual situation.

Therefore, the person who hires this service is looking for quality coverage, support and service that will bring comfort during a difficult time.

5. Listen carefully to your customer

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Something that we have already mentioned and that should be a priority in a broker's service is knowing how to listen to customer demand. By understanding what the customer needs, you increase your chances of making money with insurance.

Selling more expensive insurance is generally more attractive, do you agree? Since you will receive a higher commission. However, there is no point in delivering a service that does not have the characteristics that the customer is looking for.

So, you can even do business by selling higher vehicle insurance, but on the other hand, you could lose a customer in the future.

In other words, it is much more advantageous to sell a cheaper insurance, but be sure that your customer will be satisfied. This way, he will be able to find the desired benefits in the service that was contracted.

As a result, you will have someone happy with your work, able to recommend it to other people. And best of all, willing to renew the contract like you.

Much more than making sales, as a broker you must find the right solutions for each person.

Therefore, don't forget that you can get a good return on renewal commissions. But you will need to maintain a good long-term relationship with your audience.

6. Adapt plans to cheaper options

Knowing how to negotiate and find good prices is important in various types of business. This can be a great strategy for making money with auto insurance.

As a broker, it is not always interesting for you to sell cheaper insurance options. After all, this will directly reflect on the commission you will receive from that sale.

But it's as we said before: finding cheaper insurance, with discounts, can be very attractive for the consumer.

If we consider mainly the time of pandemic and crisis, we see that people are looking for more affordable solutions.

This way, being able to make adaptations can help you avoid losing the sale. You will be able to secure customers who are not willing to spend a lot at the moment. So, offer affordable services whenever possible.

Of course, without giving up trying to sell more expensive insurance to earn more. But if this is not possible, do not discard the cheapest ones. The volume of cheaper sales will still guarantee good revenue at the end of the month.

7. Dedicate yourself to customer after-sales

After-sales is something that contributes to the growth of any company. For a broker who wants to make money with auto insurance, it can also be very useful.

First of all, it is important to understand that the broker's role is to help the client find good services, mediating the relationship between them and the insurance company. You already know that, don't you?

Therefore, the broker must also be prepared to answer questions and help in different situations.

With good after-sales, it is possible to maintain a positive relationship with customers. This is something that will increase the chances of this audience returning.

To this end, it is essential to be helpful whenever the customer needs any guidance regarding the service. As well as when he has questions about how to contact the insurance company and the like.

So, maintaining an open and efficient dialogue channel is a way of showing the customer how you care about their experience. This can earn you contract renewals and even recommendations.

Did you see how these basic tips can be very useful in helping to develop your business?

By putting them into practice, you can gain loyal customers who will help promote your business, and of course, earn money with insurance.

Article produced by the Find Your Franchise team.