7 Key points for an insurance agent to consider when a client files an automotive loss claim

A common trend in the past decade has been for insurance companies to discourage their agents from involving themselves in the claims process when their client sustains a loss. There are a number of good reasons why companies have adopted this position, not all of which are to the agent’s benefit.

A good number of the larger, more successful insurance agencies have resisted this trend with very positive results. Here are a number of points for you to consider the next time you have a client call you about a loss they’ve just sustained.

*A friend in need is a friend indeed.

Most people don’t have a lot of experience about what to do when they have an automobile accident. On the national average a person is going to be involved in some type of auto collision once every seven or eight years, be it a fender bender, a hail storm, or some other unfortunate incident. If mishaps happen like clockwork your involvement as an agent wouldn’t be so critical. More often your client is going to have two or three incidents in a short period of time every fourteen to twenty four years. If this is the case your client is not going to know what to do, what is expected of them, or what will happen to their finances and their vehicle. Fear is the predominant emotion people feel when they’re faced with this kind of situation. Your help and your expertise will go a long way to assuage these fears and to make your client comfortable in an uncomfortable situation. People are appreciative of a friend when they’re going through a tough time. You can be that friend.

*A claim is an excellent opportunity to demonstrate your product’s worth.

In the average claims situation the client has been paying insurance premiums for years with nothing to show for the money they’ve spent. When they file a claim they’re actually getting something for their money. This is a terrific time for an agent to reinforce how valuable insurance is. While the agent’s at it, it’s also a good time to reinforce the client’s wise choice in having them as their agent.

*Your assistance in a claim situation is an excellent opportunity to demonstrate your worth as an agent.

In the past decade the two major dot-com insurance companies have dramatically increased their market share in the United States. A principal reason for this trend is the perception by the average consumer that an insurance agent is unnecessary. Oftentimes the only time a person hears from their agent is when that agent’s trying to sell them more insurance. If the agent just passes their client off to the claims department when they have a loss that agent has just validated the notion that they are not necessary. Conversely, an agent who’s done a lot of the homework necessary to guide their clients in a time of need is a valuable asset. It’s no coincidence that most of the larger, more successful insurance agencies still involve themselves in the claims process.

* Your assistance in a claim situation is an excellent opportunity to establish yourself as an expert who should be listened to.

Most people are at a loss when they file an insurance claim. Sure the person at the other end of the hot line will instruct them what to do, but they’re very limited with respect to being able to handle personal issues and concerns. An informed agent can be of tremendous assistance to the person filing a claim. Recommending a good body shop, or better yet, having a friend in the body shop business will go a long way toward establishing an agent as a knowledgeable person who’s guidance and advice can be trusted. This same authority can be used later when recommending financial solutions or coverage upgrades. Any time an agent is of service to their client it reinforces their relationship and builds an atmosphere of trust.

*Your assistance in a claim situation is an excellent opportunity to provide your client with a value added service.

Most people don’t think about body shops until just after the sound of broken glass recedes. A friendly, knowledgeable insurance agent who is willing to help their client through these worrisome times can be a tremendous value-added benefit. Knowing what body shop to go to, what rent car company to use, advising the client of what to expect and what to look for, and any other guidance and help is always most appreciated. Going a step further and offering innovative programs like comprehensive damage reports*, vehicle replacement assistance for totals*, and having a personal relationship with the repair shop will help turn that client into a sales person for the agent.

*A positive repair experience is an excellent opportunity to cement your relationship with your client.

While the company you represent may have an excellent claims department as well as an effective Direct Repair Program, not all of the shops on that program are necessarily the most accommodating repair facilities one can find. A web search will show that some of these shops repeatedly have unhappy customers who are vexed enough with their repair experience to post their views on the World Wide Web. It’s a good bet that if these folks were sent to these shops by your claims department they’ll be looking elsewhere for insurance when renewal time approaches. A well informed agent can refer their clients to a shop where they know they’ll enjoy a positive repair experience. That positive repair experience will go a long way toward cementing the client’s relationship with that agent.

*A positive repair experience is an excellent opportunity for you to cross sell and up sell your client.

If one of your insureds has a claim and enjoys a positive repair experience, you’ve just demonstrated your product’s worth to them. This is an excellent time to visit with them and review their other insurance needs. If their renters’ insurance or homeowners’ insurance is with another company they will question the wisdom of staying with that company, as opposed to switching to a company they now know will take care of them in a time of need.

*Summary.

Insurance Agents are in business to protect the interests of their clients as well as to protect the interests of the company or companies they write insurance for. Agents who pass on opportunities to provide this service aren’t going to do as well as agents who actively take care of their clients. Whenever a customer has a loss that is an excellent opportunity for a responsive agent to serve their customer’s needs. Assisting their customer in these times is not only appreciated, it will go a long way toward retaining that client, and even increasing the product that agent provides to that client. The more the agent avails themselves to the client the more likely they’re going to have a loyal client who sticks around, buys more insurance, and recommends that agent to their friends, their family, and people in their sphere of influence.