1

As any insurance agent, your auto insurance reduction ratio is the ratio of premiums to the sum of claims paid by the company for your specific book regarding small business . Maintaining a excellent reduction ratio remains important mainly because the business gives you liberty to write more policies if your proportion about payouts is low. Occasionally firms moreover offer bonuses for those with a reduce loss ratio. Though you may't control all factors, because accidents execute occur, you can do some things to lower your automobile loss ratio.

Instructions

1 Check out the area where the unique lives. Though insurance corporations know everywhere the highest crime rates occur, these are often in chart type plus as averages. You experience the benefit because you know your town well. Don't market to these areas.

2 Make use of several different companies for quotes. If you get iffy behavior in your client, don't quote corporations that offer some bonus for improved loss proportion. You may't refuse to sell insurance policy, but you don't contain to use the very same firm for every client.

3 Watch the client's behavior on the cell phone. If it rings consistently whilst you're interviewing him also he responds, chances are he answers whilst he drives. This can lead to accidents, thus use one alternative company for his application.

4 Primary your marketing list to married men and families , because married men many times have fewer accidents besides single men the same age. Younger ladies statistically get fewer accidents and tickets other than men the similar age, so marketing to ladies remains another option.

5 Recommend higher deductibles for your clients. Quite a few accidents are fender-benders that don't meet high deductibles or are so close that customers like to fork out for the damage themselves rather other than incur some state. By recommending some better deductible, you lower the sum of premium you receive. Nevertheless that doesn't issue mainly because the possible payouts keep your loss ratio some lot reduce.

7 Include all the information you can when you're paper an application with customers, and select your promoting list meticulously. Ask about every drivers who frequently use the vehicle. A good driver might have a crazy boyfriend or girlfriend who often drives the car. Understand your clients effectively. Contain all the info about it on the application so the insurance company can generate the variety.

References

Women Have Fewer Accidents

Auto Insurance Tips

Drivers on Cell Phones Destroy Thousands in Accidents, Snarl Traffic