Quality auto insurance leads can be the sole determining factor for the success of an auto insurance agent. Leads are information about potential customers who have shown a significant interest in purchasing auto insurance by filling out an online form for a quote. This information is then sold to an agent or a group of agents who try to immediately contact this person and write them an auto insurance policy.
The length of the delay can be the determining factor for the sale because once a lead has gone cold (after a certain amount of time), closing that lead becomes nearly impossible.
Every month, there is an average 135 million online searches for auto insurance. This number means that there are potentially 135 million car leads can be generated every month.
Each time someone opens a bill for their car insurance they remember that at least one of their friends has lower insurance rates. Immediately they go online to find possible alternatives and during their search for information, they come across an online quoting tool, a viral hook, type in their information, and create a lead. The amount of individuals who perform this sequence of events is not only copious, but it is also growing every day because saving money has become a cultural necessity in today’s economy.
Additionally, big life occurrences and rites of passage are cases for people to evaluate their auto insurance. For example studies show that nearly 50% of families buy a new car when a child is born forcing these families to write new and more expensive auto insurance policies. These auto insurance leads amount to higher commissions for agents.
Each car costs a different amount to insure. A new car is more expensive to insure than an old car and a sports car costs more to insure than a minivan. Because of this kind of variety in insurance, one auto insurance lead can yield very different results than another. So the commission each agent can earn on an auto insurance lead can be different for every lead.
Considering the many different types of auto insurance leads available, InsuranceFiles.com can customize them to fit any kind of filter that an agent can choose. These filters can be based on location of the potential customer in question, time when the leads are received, and most importantly the specific type of lead. This is especially important if an agent has discovered that a certain type of lead converts best for them after analyzing their conversions.
Auto insurance is legally mandatory in 49 of the 50 states in the US; therefore, it is a hot commodity. The more people who want and need car insurance, the more auto insurance leads get generated on a regular basis.
Leads are a barometer for the demand of a product. The more demand there is for that specific like product like auto insurance, the more auto insurance leads that exist and get generated. This also means that because such a great number of people are looking for auto insurance, a policy will be much easier to close. And so the conversion rate for auto insurance leads is very high because of said demand.
Auto insurance leads work as an alternative to traditional marketing methods such as direct mailing and cold calling, both of which have been proven to have low conversion rates. On average, the conversion rate for direct mail is less than 1%.
If you mail out advertisements promoting yourself as an agent to 100 people, less than one of those people will actually write a policy with you. Upon first glance this may seem like an easy way to get a few customers, but when you take into account all the effort and money put in to designing, ordering, and physically mailing this advertisements, it hardly seems worth it for a less than 1% conversion rate.
Our auto insurance leads, however, have a conversion rate that can range anywhere from 10-20% depending on the quality of the lead and the ability of the agent. Auto insurance leads for agents are the most effective forms of marketing that bring the best results.