Why you do It
When you are working internet leads that are not exclusive, you know that prospect is going to get calls from about six different agents who would simply die to get their business. If you are an experienced agent and competing with some junior agent who got their license last month, it can be very tempting to blow them out of the water with a meaningless lowball quote. The question then remains; to lowball or to not lowball?
It goes without saying that lowest quote will typically get some attention and a quick call back. This is when the agent is going to have to explain that the quote was an estimate and that other underwriting information needs to be obtained to firm up the quote. At this point, your dice have hit the table. Hopefully, your prospect will understand and proceed to tell you that their credit score is terrible and although they paid both the tickets they got this year, somehow their license is suspended. Now you deliver the quote, and they seriously consider it. After all, they’re the ones who fibbed on the lead sheet right? You manage to make the sale with a hefty premium because of the bad credit score and driving record. Congratulations, you rolled a 7.
You sent out a very low quote for a commercial client who has been around the block a few times. You show them having five years prior coverage and no claims, so the rate is very good because they qualified with your best carrier. Once again, you roll the proverbial dice. The prospect jumps on the phone after seeing your quote and is ready to bind coverage. Now you have to explain that you want to verify their prior insurance and claims history. They immediately inform you that this is a new business; that’s what they put on the lead sheet. When you explain that you missed that, and you’ll have to re-quote with a different carrier, they tell you not to waste your time, and they hang up.
Similar to the paragraph above, you send out a very low quote and get a call back from the prospect who immediately informs you that they are short on time, but since you had the lowest quote, they want you to bind coverage and send them a certificate immediately because they are on the way to pick up a check for laying carpet. Can you hear the dice hit the table?
Every assumption you made to get the quote really low is wrong. The prospect gets really upset because of your attempt at “a bait and switch scheme” and wants to talk to your manager. Of course, you lie again and tell the prospect your manager is on vacation. He immediately says some terrible things about your mother and your sister and then announces that he will tell everybody he knows that your agency sucks! You guessed it; you rolled craps.