How to Deal with Objections when Selling Insurance

This post is part of a series on insurance marketing and training sponsored by Astonish.

We’ve all heard the same objections over and over again from prospects when trying to sell them insurance. Sometimes it’s an objection to price. Sometimes it’s an objection to additional coverage they need. If you’ve heard, “but why do I need that?” or “that’s more than I was expecting to pay,” read on.

The bottom line on handling objections, for the local insurance agent or producer, is this: You need to sell the value, not the price. I’ll repeat: You need to sell the value, not the price. Why? Because everyone wants to buy the cheapest or the minimum coverage, but you know better. You’ve seen what happens to clients who go with the cheapest or the minimum, haven’t you? Yes!

This is why you need to sell beyond the price. So how do you sell beyond the price? Here are a few tips:

1. Educate consumers. You remember the story of the guy who didn’t buy comprehensive auto insurance. What happened when a tree fell on his new car? Educate your clients and consumers who call your agency.

2. Explain why other quotes might be lower. If you know your competitor’s quotes are lower because he’s not offering the ideal amount of coverage, let the prospect know.

3. Sell your value. Do your competitors check their clients’ policies annually to make sure they are delivering the best possible coverage for the best rate? Do you? If yes, sell that. Do your competitors stand by their clients when claims are being refuted by an insurance company? Do you? If yes, sell that.

If service is truly what sets you apart, you need to let people know. Let them know, when they do business with your agency, they will get a dedicated account manager who will answer their questions and get things done. If you use the latest technology to assess risk, let them know “this is why I’m suggesting additional coverage.” And show them the report.

Most consumers simply don’t know a lot about insurance. They buy it once and forget about it. And they don’t have time to find out why it’s better to work with your agency than any other agency or direct writer. It’s your job to teach them. Sell the value!

About the Author:Adam DeGraide is the CEO and Founder of Astonish, which was recently ranked 267th on the Inc. 500 list of fastest-growing private companies in the U.S. DeGraide and his team are the driving forces behind a vision to help the insurance industry grow its businesses by using the Internet. Now currently serving over 800 retail brokers in America, Adam DeGraide and his team at Astonish are encouraging the insurance industry across the country to “join the Internet marketing revolution, or get left behind!”