How to sell car insurance

How to sell car insurance

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Selling car insurance requires a property and casualty insurance license. Licenses are state specific with licensing requirements that are maintained by each state’s department of insurance. You need to meet the course-hour requirements, pass an exam and become “appointed” with an insurance company to sell car insurance. Most states have an age requirement of 18 years or older.

State Department of Insurance

Because insurance is governed by state entities, requirements vary from state to state. Check with your state department of insurance or insurance commissioner to determine the exact number of pre-licensing education hours needed, the exam basics including duration and scoring and the registration fees for your state. You can pass the exam without being associated with a specific insurance company, although some insurance agencies are willing to pay for licensing requirements. In addition to taking the pre-licensing class and exam, you need to complete an application with the state that includes a background check and fingerprinting and pay any applicable fees for your state.

Pre-Licensing Coursework

Pre-licensing course work is done either in a classroom setting or online. You must find a preapproved vendor and attend all hours to be eligible for licensing. For example, in California, you need 40 hours of pre-licensing class time and another 12 hours of ethics. If you attend a class in person, you sign in and sign out to demonstrate you were there for the entire duration.

If you take an online course, the program monitors your progress. Other states have other requirements. Hawaii requires only 24 hours of coursework plus 12 hours of ethics. The class registrar reports your hours to the department of insurance upon your successful completion of the classes.

Passing the Exam

Every state issues its own exam, and you must meet the minimum requirements. These proctored exams are given at test centers. In California, you pass with a score of 60 percent, while in Hawaii, you must answer at least 75 percent of the answers correctly on the two-hour multiple-choice exam. Prepare for the exam by taking practice exams issued by your pre-licensing provider.

Schedule the exam and be prepared for a proctored setting. Wear comfortable clothing but avoid hoodies or anything baggy with a lot of pockets. All personal items are left in a locker outside the test room.

Getting Appointed to be Able to Sell Insurance

Once you have completed the application, background check and pre-licensing process and have passed the exam, you can contact insurance agencies to be “appointed” – a term that means you are allowed to sell their products. Know the type of agent you want to be: A captive agent sells only one company’s product, while a broker sells insurance from many companies. For example, insurance agents who work for State Farm are captive agents and can sell only State Farm products.

If you were previously licensed in another state, inquire about reciprocity agreements that allow you to produce across state lines. For example, Hawaii allows California insurance agents to obtain a nonresident license without additional exams or education requirements.

  • California Department of Insurance: Prelicensing Program Requirements
  • Ad Banker: Hawaii Prelicensing Requirements
  • Hawaii Department of Commerce and Consumer Affairs: Insurance

With more than 15 years of small business ownership including owning a State Farm agency in Southern California, Kimberlee understands the needs of business owners first hand. When not writing, Kimberlee enjoys chasing waterfalls with her son in Hawaii.

How to sell car insurance

Insurance agents sell insurance policies to customers on behalf of insurance carriers and brokerages. Agents must be familiar with the types of policies their agency sells, and help customers determine which policy best suits their needs. They should also have strong sales, marketing, and customer service skills in order to locate and attract potential customers. Insurance agents may sell one of many different types of insurance, including life, health, automobile, and liability insurance.

Agents who work for an insurance carrier sell policies only from that agency, while those who work for brokerages sell policies from a variety of insurance providers.

What kind of training is required to become an insurance agent?

Insurance agents can come from all types of educational backgrounds. In many cases, agents can qualify for jobs with only a high school diploma, but some employers prefer a college degree. Completing a degree in business or management, for example, can be good preparation for a career in insurance sales, because graduates will be familiar with principles of marketing, economics, and finance.

While there is no one degree that is required for insurance sales agents, most states require agents to complete a pre-licensing training course. These courses typically take a few days or more to complete and cover topics that appear on the state licensing examination. Students in pre-licensing courses learn about insurance ethics, different types of insurance policies, and their state’s laws as they apply to the type of insurance they want to sell.

New insurance agents often receive on-the-job training from their employer after they are hired. Trainees learn about the types of insurance products their agency sells. They also receive training in sales strategies and may be matched with a mentor with experience in insurance sales.

Are there any certification or licensure requirements?

Each state has different licensure requirements for insurance agents, and even within a state, these requirements vary depending on the type of insurance one sells. In general, to obtain a license to sell insurance, one must pay a fee, complete a pre-licensing training course and pass a licensing examination. Some states also require license applicants to be sponsored by an employer.

Agent licenses must be renewed periodically and maintained by completing continuing education.

How long does it take to become an insurance agent?

While taking two or four years to earn a college degree can enhance one’s job prospects, in many cases, one can become an insurance agent after completing only a pre-licensing course, which can take several days.

What does an insurance agent earn?

The median yearly pay for insurance agents in the United States was $48,150 in 2012. The lowest ten percent of earners in this field made less than $26,120 and the top ten percent earned more than $116,940 that year.

What are the job prospects?

The Bureau of Labor Statistics projects that employment of insurance sales agents will grow by 10 percent between 2012 and 2020, which lines up with the average projected growth for all occupations. The BLS expects that job prospects will be best for agents who sell health and long-term care insurance and for those who provide financial planning services in addition to insurance sales.

What are the long term career prospects for insurance agents?

Sales agents who gain experience can advance into senior sales and management positions within their agency or brokerage. Some agents find success working independently, running their own agencies.

How can I find a job as an insurance agent?

There are many national and local insurance carriers and brokerages that you can contact for information about employment opportunities. Because success in sales depends on making connections in your community, having volunteer experience can be an asset in your job search. If you are unable to find a job right away, you may be able to build experience by completing an internship or taking a related job in the insurance field.

How can I learn more about becoming an insurance agent?

There are a few national associations for insurance agents, such as Independent Insurance Agents and Brokers of America, Inc. and the National Association of Professional Insurance Agents. There are also many state associations for insurance agents, and these groups can be good sources of information on becoming an insurance agent in your state. State associations also typically offer pre-licensing training courses for agents as well.

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You can often sell a car without insurance. However, the vehicle should satisfy all of your state liability requirements, which may include taking the license off the vehicle and, of course,not driving it. You should make the buyer aware that the vehicle is not insured and they should only drive the vehicle if their own insurance coves it.

Each state is different so please contact an experienced broker in your area.

Disclaimer: The preceding answer should not be considered legal advice or binding in any way. It is simply an opinion.

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Selling a car is separate than carrying insurance on it.
If the vehicle is going to be test driven, then it would be a good idea to be sure the driver has insurance on it and/or you have minimal insurance to protect yourself until it is sold.

Check with your state, however you may have to be sure the vehicle can pass emissions as well unless stated or scrapped. Again check with your local state rules.

This is my recommendation to you however please consult your local agent to get full disclosure for your situation. Good Luck.

How to sell car insurance

How to sell insurance is top of mind for anyone who is considering this rewarding career. Insurance sales requires hard work, determination, networking, marketing, followup, and a genuine interest in people’s lives, plans, and future. It means working on commission (in most cases) and having at least one insurance license. This article describes the steps to follow for selling insurance.

1. Decide what type of insurance to sell and earn your license.

Insurance sales is a broad category, and one insurance license doesn’t cover all the different types. So, you should choose what kind of insurance you’d like to sell. The common options are life, health, property, and casualty insurance. Two other types that are fairly common are surplus line insurance, which covers unusual situations with risks not addressed by standard insurance, and variable products insurance, which have an investment element.

To earn an insurance license for everything except variable products insurance (you need a FINRA Series 6 license for that), you need to be at least 18 years old. You will have to pass an exam administered by the state where you want to sell insurance. Many states require you to complete prelicensing education before taking the exam. You must also pass a background check that can include fingerprinting.

2. Choose how you want to sell insurance.

There are two ways you can sell insurance after you earn your license. You can be a “captive” or an independent agent. Captive agents work for a specific insurance carrier and can only sell its insurance products to prospects and clients. Typically, their office expenses are paid for, and they receive benefits and continuing education training.

Independent agents work for themselves and sell the products of different insurers. They use their own resources to start and market their business, but they typically earn larger commissions than captive agents. By offering products from different carriers, they can tailor solutions specifically for their prospects and clients.

Thinking about a career in insurance? Download this free Launching Your Insurance Career eBook.

3. Generate leads.

After earning your license and choosing how you want to sell insurance, you’re ready to start selling. You know you need to help clients understand differences in insurance policies so they can choose the plan that’s right for them, but first you need to get those clients. So, how do you do that? You will have to generate leads.

If you’re working as a captive agent, your employer may provide you with leads, usually by selling them to you. If you’re working independently, you will need to generate leads in other ways. Many independent agents purchase lists and some even engage insurance marketing organizations or field marketing organizations to help them with marketing and lead generation.

Even with help from another party, it’s always a good policy to make sure you also get leads the old-fashioned way—by networking and using referrals. Encourage family and friends to refer you. Participate in insurance and other community events to get the word out that you’re an insurance agent. Remember to create a website and profiles on Facebook, LinkedIn, Twitter, Instagram, and Snapchat and keep up with them regularly, engaging as much as you can.

4. Make your pitch.

Selling insurance to your leads is all about the pitch. You need to present yourself well, speak in the language your prospects understand (no slang or jargon), and demonstrate empathy with their situations. When you put yourself in their shoes, you can better explain how your insurance products will benefit them.

Potential clients are looking for a solution and benefits, not a list of features. Therefore, you should examine and understand how the features you offer solve problems so you can make appropriate solution recommendations. This is called solution selling, and it is more effective than just listing features like a 24×7 helpline or a one-click accounting report.

Many leads might think they don’t need insurance or are reluctant to commit to the best policy, fearing the cost. Or, they might be required by a bank or law to purchase insurance and want the lowest-price option. In those cases, you should ask questions that will get them to focus on what could happen without the proper amount or type of insurance:

  • What’s the most valuable thing in your house?
  • What happens if it is stolen?
  • What kind of serious weather events—such as floods, hurricanes, blizzards, or storms—have happened near your house?
  • If you passed away, how long would your family be able to live on your savings?
  • How much do you think a funeral costs?
  • What would happen to your job if you were permanently injured?
  • If you’re injured or hospitalized for a long period of time, how would you and your family be supported?

After you get answers to those questions, you can explain how the insurance solutions you provide can help them safeguard for those situations.

Step 5. Follow these tips.

Here are some additional tips that can help you get new clients and keep them:

  • Create sales goals to keep you on track throughout the year.
  • Find something in common with prospects and clients to put them (and yourself) at ease.
  • Find opportunities to learn from experienced coworkers or, if you’re independent, from other independent agents.
  • Keep up with the markets and insurance trends so you can introduce new solutions to prospects and existing clients.
  • Listen to your prospects and clients more than you talk to them.
  • Never miss an opportunity to network.
  • Partner with other professionals, like lawyers and accountants, who can answer client questions that you can’t. Then, offer to answer insurance questions that they can’t as a way to get referrals.

Think Selling Insurance Is Right for You?

If you’re excited about helping people plan for the future with the right insurance products, your first step is earning your license. Exam preparation packages can help increase your chances of passing, so you can start your exciting new career.

How to sell car insurance

Selling insurance is rewarding, has amazing growth potential, and is a great way to start your career or make a much-needed change. But if you do know, you think you have what it takes, and you’ve considered making this career change, you’re likely wondering how. In this article, we’ve outlined the five basic steps toward earning a license and starting your insurance career.

How to Become an Insurance Agent

Step 1: Decide What Kind of Insurance You Want to Sell

The first thing you want to do is decide what type or types of insurance you’d like to specialize in. In the industry, these are referred to as “lines of authority.” Here’s a rundown of the most common:

Life insurance: Selling policies and annuities related to providing for a beneficiary upon the death of the insured.

Health insurance: Selling medical, disability, Medicare supplement, and long-term care policies.

Property insurance: Selling homeowner, commercial property, and inland marine policies.

Casualty insurance: Selling auto, workers compensation, crime coverage, and professional liability policies.

Surplus line insurance: Selling coverage for unique or unusual situations with risks that aren’t covered by standard insurance, such as daycare insurance, oil drilling rigs insurance, and special events like state fairs, car races, and outdoor amusement parks.

Variable products insurance: Selling insurance products with an investment element. To sell this kind of insurance, you need certain securities licenses.

Personal lines insurance: Selling products like auto insurance, homeowners insurance, renters insurance, and policies for boats, motorcycles, and snowmobiles to individual consumers only.

Another option is becoming an adjuster, which is the business of investigating and adjusting claims on an insurance policy. Insurance adjusters also solicit for the adjustment business.

In a number of cases, you don’t have to pick just one line of authority. Individuals often combine certain lines, such as property and casualty insurance.

Thinking about a career in insurance? Download this free Launching Your Insurance Career eBook.

Step 2: Understand the General Requirements

After you’ve decided what kind of insurance agent you want to be, the next step is to understand the basic requirements:

You need to be at least 18 years old to become an insurance agent.

You need to complete prelicensing education for your line of authority, which is determined by each state. The number of hours you’ll have to complete and the cost also varies by state.

You need to pass the state insurance licensing exam for your line or lines of authority. A prelicensing exam preparation package can help.

You need to pass a background check. The process varies by states and, in some cases, includes fingerprinting.

You need continuing education to keep or renew your license.

Step 3: Decide on a State and Find Out Its Requirements

Now that you have a basic idea of what you need to do, it’s time to decide whether you want to sell insurance in your home state or some other state. (You can also sell in more than one state, but you also must abide by the rules for each.) As you saw in Step 2, each state regulates its own insurance licensing process, and each state’s regulations or rules are slightly different, so this is why deciding on where is so important.

After you’ve made your decision, check with the department of insurance in that state for the rules. The state bodies of government that regulate insurance have different names, so a good way to find out the name of the state’s insurance body is to go to the official website of the state and search for the insurance licensing rules. Most state insurance web pages are quite helpful and often have handbooks you can download and read to get all the information you need to become an insurance agent in that state. You’ll find out exactly how many hours of education (if any) you need, how to register for the exam, where to go for the exam, how you’ll get your score, and—if you pass—how you’ll get your license.

Each state website will also tell you what kind of continuing education you need to keep or renew your license.

Step 4: Research Agencies

Now is also the time to research any agencies for which you want to work. Many have additional requirements for candidates or agents to follow that you’ll need to be aware of if you want to work there. Also, some agencies will hire you before you have a license, and they might have specific processes you need to follow.

Step 5: Pass Your State Exam and Apply at Insurance Agencies

You’ve done your research and know what you want to do. So, it’s time to get out there, get the hours of education required by the state and agency of your choice, take the exam, and pass it. Armed with your license and your knowledge, you’re ready for an exciting and rewarding career as an insurance agent. Good luck, and don’t forget about keeping up with your continuing education.

In an industry that’s as competitive as auto insurance, smart agents are always on the lookout for new ways to get an edge. Here are four new ideas to make more sales and collect more commissions.

Go to the Consumer:

Successful agents often get their sales leads in non-traditional places. Try dropping by a local hardware store in the early morning and handing out free coffee to contractors picking up supplies; while they might need commercial auto insurance, they might also be interested in workers comp options and other forms of small business insurance. Another option is to sponsor a motorcycle ride or other local events with an obvious insurance tie-in. For the most part, bikers are good drivers on two and four wheels and can make great clients.

Market Online:

Most agents are marketing online in some way, but few know how to really take advantage of this powerful tool. One of the most efficient ways to reach customers is to find people who have raised their hand and indicated an immediate need for insurance through lead from services like All Web Leads, or through bidding for keywords with your own website via pay-per-click (PPC) advertising. Since everyone who clicks on an ad has self-identified interest in auto insurance, you pay only to market to people who are really potential sales. If you attempt to promote your website via search engine optimization (SEO), find a specific niche and construct relevant content accordingly. Getting to the top of the Google results for “auto insurance” is nearly impossible. Getting to the top of the “cheap auto insurance for singles in tampa” rankings is much easier. The trick is to provide quality information that satisfies those searches. When it comes to SEO, quality trumps quantity.

Use Consumer Surveys:

The more information you have on your clients, the better you will be able to serve them. Just soliciting surveys lets your clients know that you put some value on their experience, and the survey results themselves can identify opportunities for improvement. Most email marketing services will help you set up email surveys; consider giving out some prize or incentive for completing the questionnaire to get as many results as possible. Give your clients the opportunity to fill in their own custom comments and post the best ones on your website to build trust with new consumers.

Encourage Client Referrals:

Another way to use surveys is to identify your customers who are most likely to refer you. In your survey, simply ask a question such as “How likely are you to recommend your agent to a friend?” If you use survey software like SuveyMonkey that can connect responses to the email address of the respondent, you can determine exactly which of your clients are most likely to refer you, and then you can send them follow-up marketing and incentives to refer you.

Sometimes simply making yourself available and your contact information easy-to-find is the best way to encourage existing customers to refer you. Insist on exchanging cell phone numbers with your current customers so they can call you with claim or billing questions. If one of those clients speaks with a friend who has insurance questions, he’ll have your contact information right there to point another interested consumer in your direction.

How to sell car insurance

Selling insurance is rewarding, has amazing growth potential, and is a great way to start your career or make a much-needed change. But if you do know, you think you have what it takes, and you’ve considered making this career change, you’re likely wondering how. In this article, we’ve outlined the five basic steps toward earning a license and starting your insurance career.

How to Become an Insurance Agent

Step 1: Decide What Kind of Insurance You Want to Sell

The first thing you want to do is decide what type or types of insurance you’d like to specialize in. In the industry, these are referred to as “lines of authority.” Here’s a rundown of the most common:

Life insurance: Selling policies and annuities related to providing for a beneficiary upon the death of the insured.

Health insurance: Selling medical, disability, Medicare supplement, and long-term care policies.

Property insurance: Selling homeowner, commercial property, and inland marine policies.

Casualty insurance: Selling auto, workers compensation, crime coverage, and professional liability policies.

Surplus line insurance: Selling coverage for unique or unusual situations with risks that aren’t covered by standard insurance, such as daycare insurance, oil drilling rigs insurance, and special events like state fairs, car races, and outdoor amusement parks.

Variable products insurance: Selling insurance products with an investment element. To sell this kind of insurance, you need certain securities licenses.

Personal lines insurance: Selling products like auto insurance, homeowners insurance, renters insurance, and policies for boats, motorcycles, and snowmobiles to individual consumers only.

Another option is becoming an adjuster, which is the business of investigating and adjusting claims on an insurance policy. Insurance adjusters also solicit for the adjustment business.

In a number of cases, you don’t have to pick just one line of authority. Individuals often combine certain lines, such as property and casualty insurance.

Thinking about a career in insurance? Download this free Launching Your Insurance Career eBook.

Step 2: Understand the General Requirements

After you’ve decided what kind of insurance agent you want to be, the next step is to understand the basic requirements:

You need to be at least 18 years old to become an insurance agent.

You need to complete prelicensing education for your line of authority, which is determined by each state. The number of hours you’ll have to complete and the cost also varies by state.

You need to pass the state insurance licensing exam for your line or lines of authority. A prelicensing exam preparation package can help.

You need to pass a background check. The process varies by states and, in some cases, includes fingerprinting.

You need continuing education to keep or renew your license.

Step 3: Decide on a State and Find Out Its Requirements

Now that you have a basic idea of what you need to do, it’s time to decide whether you want to sell insurance in your home state or some other state. (You can also sell in more than one state, but you also must abide by the rules for each.) As you saw in Step 2, each state regulates its own insurance licensing process, and each state’s regulations or rules are slightly different, so this is why deciding on where is so important.

After you’ve made your decision, check with the department of insurance in that state for the rules. The state bodies of government that regulate insurance have different names, so a good way to find out the name of the state’s insurance body is to go to the official website of the state and search for the insurance licensing rules. Most state insurance web pages are quite helpful and often have handbooks you can download and read to get all the information you need to become an insurance agent in that state. You’ll find out exactly how many hours of education (if any) you need, how to register for the exam, where to go for the exam, how you’ll get your score, and—if you pass—how you’ll get your license.

Each state website will also tell you what kind of continuing education you need to keep or renew your license.

Step 4: Research Agencies

Now is also the time to research any agencies for which you want to work. Many have additional requirements for candidates or agents to follow that you’ll need to be aware of if you want to work there. Also, some agencies will hire you before you have a license, and they might have specific processes you need to follow.

Step 5: Pass Your State Exam and Apply at Insurance Agencies

You’ve done your research and know what you want to do. So, it’s time to get out there, get the hours of education required by the state and agency of your choice, take the exam, and pass it. Armed with your license and your knowledge, you’re ready for an exciting and rewarding career as an insurance agent. Good luck, and don’t forget about keeping up with your continuing education.

If you’re selling a car or have ever sold one, you know there are many questions that can arise when it comes to legal ownership and insurance on the vehicle being sold. Additionally, to save money, most people don’t want to insure a vehicle a second longer than they must.

Here, we’ve covered some of the most common questions to help ensure (and insure) your peace of mind while selling your car.

When should I cancel my insurance on the car I’m selling?

Here’s a scenario: You’ve decided to drop car insurance coverage on a car you’re selling. The person you are in the process of selling it to wrecked the car, and now your license is being suspended because the car was still in your name. What could you have done differently to avoid this?

If you had already officially sold the car to the person driving, then there may be steps you can take to keep your license from being suspended. If the title was signed over to the new owner at the time of the accident, you may have some defense in keeping your license.

If you hadn’t yet sold the car to the other party and the vehicle title was still in your name, then it’s doubtful that you can keep your driver’s license from being suspended.

To keep yourself from being penalized for no car insurance, don’t cancel your car insurance policy until it’s officially sold and even then, first check with your Department of Motor Vehicles (DMV) to see if the person has placed the car in their name.

If you did a notification, then get a copy of the form to see if providing that along with a copy of the bill of sale to the DMV, showing that the car was sold before the person was in the accident, will convince the state to drop the penalties against you. If they don’t, you may want to seek legal advice on other options you may have to keep your license valid.

Does insurance cover a person test-driving my car?

If you’re selling a vehicle, there is a high chance that potential buyers will want to take it for a test drive. Car insurance follows a car, so this means it was your responsibility, as the car owner, to carry insurance on it while it’s still in your name. Whether or not the person test-driving has their own insurance is irrelevant in this case.

If you cancel insurance on a vehicle that is being driven, even by a test-driver, you’re most likely breaking the laws of your state and are also putting yourself at high risk of financial hardship if there is an accident.

Can you sell a car without insurance?

What if you’re selling a car that no one drives and so you’ve already cancelled coverage?

Even if you aren’t using a car that you have up for sale, you need to keep car insurance (and registration) valid on it so that anyone interested in purchasing the car can test-drive it.

If you want to take insurance off of a car, then you would need to turn in your registration and plates and not have anyone at any time drive the car, or else you can face penalties for allowing your uninsured car to be driven.

How do I cancel my car insurance?

If your car has been officially sold and the DMV confirms it is now in the new owners name, it is time to cancel your auto insurance. Most of the time, cancellation is as simple as contacting your insurance company. They will typically request you sign a cancellation agreement and if you’ve prepaid, they’ll issue you a refund. To learn more, check out our guide on how to cancel your car insurance policy.

Don’t forget that you’ll still need car insurance for any other vehicles you own. Car insurance doesn’t have to break the budget. There are many options available for cheap car insurance if you are looking to save some money.