Insurance World

Speed cameras are now a regular feature on our roads, and have successfully reduced accidents, while raising millions of pounds in fines. Such is their prevalence, that one in four households have a driver that has been caught speeding at least once. With the conviction comes three points on the licence and a Ј60 fine – but research carried out by the AA has shown that there are more costs to consider, and that’s on the car insurance.

The AA’s research showed that on average drivers can expect to see their premiums rise by 20% with speeding offences, even if their driving record was perfect before. They made their findings through mystery shopping – calling a range of eight insurance companies and giving the details of a 25-year-old and a 40-year-old to get a broad picture of the effects.

The premiums for the 25-year-old increased by an average of Ј42 after one driving offence, and by Ј178 with two. The 40-year-old would see an average rise of Ј28 after one offence, and Ј116 after two.

However, for the 25-year-old, only four of the insurers surveyed raised their premiums on an existing policy because of a first speeding offence. With a second offence in the same year however, one insurer raised the premiums from Ј563 to Ј921, another from Ј563 to Ј776. One company could not commit to insuring the driver with a second offence.

If you are caught by a speed camera, then it is important to tell your existing insurer. There is no reason not to, as they are unlikely to raise your premiums immediately, they will wait until renewal time to reconsider your premiums. The reason why it is important is because if you do have an accident and make a claim, they can use your non-disclosure of a speeding conviction to overturn your claim. And that is not worth the risk!

Also, if you are getting quotes for a new policy, then again it is essential that you disclose the speeding conviction. Points stay on your driving licence for three years, but due to the Rehabilitation of Offenders Act, insurers are able to take the conviction into consideration for five years following the offence.

The key is to shop around. Some insurers will penalise drivers with speeding offences more than others, and it will depend on your age, where you live etc as usual. More serious motoring offences will result in larger hikes in your premiums.

If you do get a speeding conviction, don’t despair – just get on the Internet and get as many quotes as you can. Using a comparison website usually comes up with some good results. You may find that by shopping around you still beat last year’s premiums, even with your conviction! If you renew with your existing insurance company without checking out the competition, you could be throwing away hundreds of pounds needlessly.

Of course, the best tactic would to be to drive within the speed limits. But all you have to do is drive a few miles an hour over the limit to get caught, so it can happen to anyone.

The golden rules are – be honest about the offence, and shop around. You’ll be amazed at how cheap your motor insurance can still be with a little time and effort.

Insurance agents playing a numbers game are not playing with the odds in their favor when they are focusing on old-style marketing techniques. Without proven, cutting edge strategies; seasoned professionals and new agents alike will have little choice over investing their money in expensive marketing such as: Direct MailPhone DialersFax BlastingPost CardsSeminars
While these techniques can provide an agent with options, they do not put them in front of prospects that want to buy their products. The top reason to use an insurance lead service is it promises to deliver what all of these marketing techniques can’t. Prospects who want to talk to them; want to know more about their products and services; and can increase their earnings exponentially versus their investment.

Agents working in the insurance business whether they are with a career company or working independently can benefit equally for the following reasons:

Leads provide high quality prospectsProspects can be turned into salesSales generate incomeIncome increases profits and competitive edge
A lead service gets an agent started by pre-qualifying prospects and delivering those prospects to the insurance agent. These prospects are ideal because their service, while being a numbers game, does require interested parties. Instead of cold calling or carpet-bombing an area with direct mailers, the agents are put into contact with people who are already looking for what they have to offer.

Leads can play into the numbers game by generating a quantity of prospects that are already quality. Agents who understand their business know that the more people they see, the greater their chances are of making sales. The chance for making sales is increased even further when the prospects are actually interested in the service or product the agents represent.

Higher Interest Equals Higher Income

By diversifying their marketing investment to include a lead service; agents can literally increase their opportunities to close a sale. While the odds favor sales when using a lead service, the agent still needs to speak to the prospect and close the deal. By recognizing that prospects may be shopping their insurance needs for a number of reasons, the agent must demonstrate knowledge of their product or services as well as generous people skills.

Focusing their target market to prospects that are already qualified will limit the amount of time that might otherwise be wasted spent chasing the wrong prospects. When an insurance agent chases down the wrong prospects, they not only face discouragement, but also frustration and a loss of time they can ill afford to waste. While there are no magic cures to finding the perfect sale, an insurance lead service maximizes the opportunity.

Realize that over 90% of the insurance agents chasing the wrong prospects in the insurance business are out of business in less than 5 years. The average insurance agent generates less than $40,000 a year in income. Mounting frustration and time wasted contributes to that number. So if 90% are out, why are 10% still in the business?

The Ten-Percent Solution

The ten percent still in the business aren’t wasting their time on the wrong leads. They diversify their marketing budgets to include a lead service. That lead service gives them ample opportunities to speak to prospects that are primed to buy what they are offering. They are not treating their business like a numbers game. They are focusing on personally touching base with an interested market. They can then turn those interested prospects into real sales that generate real income.

Higher income gives an agent a competitive edge. A career company agent can improve their leverage and position within a corporation. This gives them the opportunity to gain promotion within their corporation. For the independent agent, this can increase their independence. They set their own hours; using their time wisely and still see their profits increase.

No matter what area an insurance agent is working in, a lead service will provide them with the best business opportunity to maximize not only their investment but also their time. Insurance agents, not limited by preconceived marketing notions, can still play the numbers game. The game they play, however, will be stacked in their favor.