Everyone is feeling the pinch from the economy – leading people to look for different ways to save some money. While I am glad to still see that gas is only $2.15 (although it’s rising), it seems like I can’t turn on TV or open a newspaper without seeing headlines of financial dismay. It is important to know that your clients are feeling this pinch and prospective clients need more help than those in the past.

As insurance agents, we are educators, but we also need to be good listeners. I’ve been in the insurance industry for over 20 years and have seen how shifts in the economy can play a role in a consumer’s decision to purchase a new insurance policy. Teaching them about insurance through what might seem more like a casual conversation allows them to feel more involved in the buying process and gives you more credibility. How else can you sell insurance in a down economy?

Price Isn’t Everything

Some agents are under the false impression that the consumer only cares about getting the cheapest policy. However, a survey conducted by ComScore in 2007 tells us that only 10% of consumers choose an auto insurance policy by price alone. ComScore found that the majority of consumers consider other factors, such as the company’s brand name, reputation, or policy benefits when purchasing an insurance policy. While price is definitely a factor, most consumers still know that they need the right amount of coverage before they can start looking at the price tag of a policy.

Insurance Can be Confusing

Let’s face it, insurance can be complex. The last thing that consumers want to worry about is buying too much insurance coverage – leading them to spend more money than they have to. When times are tough, like they are now, it’s especially important to help clients understand the insurance coverage they need. If a client feels like they are being sold on a coverage that doesn’t apply to them, then chances are they will take their business somewhere else. Navigate them through the coverage options, and help them choose the policy that’s right for their family.

Be Friendly and Courteous

Sounds pretty obvious, but people are stressed enough as it is. Insurance shoppers want to work with an agent that is friendly, knowledgeable, and trustworthy. The last thing they want is to feel like they are being pushed into a policy that doesn’t make sense to them. Instead, make sure that the client feels comfortable about the coverage that they need. Guide them through the buying process. They should feel that they are making the final decisions. And if the client tells you that they were just shopping around, make an appointment to contact them when they might be ready.

It is important to make sure that any client you contact feels comfortable about buying an insurance policy. With people trying to save as much money as they can, you also need to remind them that the most important thing is to make sure that they get the amount of coverage that is right for them.