In recent weeks, insurance carriers like Allstate and Liberty Mutual have sent premium refunds of as much as 15 percent to their customers on their personal auto policies.
They’ve also turned around and boasted of that in TV ads.
This policy is great all around. It helps your customers during an economic downturn, boosts brand loyalty in the long term, gives you a public relations boost and is the right thing to do.
So how can your insurance agency use coronavirus refunds most effectively? Here are a few things to keep in mind.
The difference in premiums for a car used to drive to work or school as opposed to a car used solely for pleasure — which is driven much less regularly — is anywhere from five to 20 percent depending on lines of coverage, the insurance company and state.
But with more than 20 percent of the U.S. population out of work and as much as 40 percent working from home, the odds are pretty good that your agency’s customers are paying too much.
This is a golden opportunity for you and your agency to reach out through an email, a postcard or a phone call.
Ask your customers if they are no longer driving to and from work and offer to change the usage classification of the cars affected. Be sure to explain that the change will need to be reversed when their circumstances change, though that may be quite a while.
The easier you make this process for customers, the more they will appreciate the outreach. That will also cut down on the amount of staff time you’ll spend processing the changes.
Be sure to remind your customers of the favor as well. A confirmation email or postcard will maintain that goodwill, and you could send a reminder in a few months asking them to notify you if their usage changes, helping keep those savings top of mind.
Your customers have seen the ads running on TV. They’ve heard from friends or neighbors about premium refunds from your competitors. If they haven’t gotten a break already, they’re probably asking themselves why not.
You can still claim that goodwill and build that brand loyalty. If you don’t, someone else will.
By Duke Williams, Founder of Simply Easier Payments