One thing that parents of small children learn is the most successful way to get them to make a decision while shopping or choosing menu items is to offer two choices, A. or B… As in “Do you want the chicken strips or fish sandwich?” They will inevitably choose one or the other and stay focused on those two choices only vs. the myriad of other items available.
Insurance shoppers can be steered to a conclusion the same way. If we simply quote and present the auto coverage they ask for (which most frequently has 100/300/100 or even lower liability limits with correspondingly low deductibles of 500 or lower) we put them in a take it or leave it mode. By presenting a second quote at 250/500/100 with higher deductibles of 750 or 1000 on comprehensive and collision, and showing that there is little difference in premium for superior coverage where they really need it most we suddenly transition from selling them insurance to being their Trusted Insurance Advisor.
While many drivers, especially younger ones, have the concept that auto insurance is for the purpose to get their car fixed if they are in an accident; it is important to point out the financial disaster that could occur should they be in an at-fault accident where someone in another vehicle is injured or worse. The resulting lawsuit damages which are awarded in such cases frequently exceed $100K or even $200K, and even though the insured may think “Well I don’t have that kind of money anyway”, we should explain that their future earnings can be garnished for a very, very long time.
The goal should be to provide options which ensure a stable financial future for the insured and their families. When we reach that “Trusted Insurance Advisor” status in the client’s mind, it will help with retention and can open up the door for other opportunities such as a personal umbrella option or life insurance discussions.
The same can be true on Homeowner policies. Show them an enhanced option that includes some endorsements they do not have with their expiring policy such as earthquake, mechanical breakdown, refrigerated products, valuable items coverage, or by showing two different coverage level options within the carrier’s underwriting program choices.
So remember… “Do you want option A or B?” beats “Do You Want It?” every time. They will always choose one or the other. “Leave it” should never be an option.
