Here is a sad but true statement…Insurance has become a commodity.

People buy insurance in today’s market with, all too often, the sole purpose of finding the cheapest price. Many dangers lurk within this buying strategy, but none more dangerous than the lack of loyalty. Insurance companies like inertia. They love loyal customers that will keep paying their premiums regardless of small increases along the way. This shows the insurance company that the customer is loyal, and loyalty is something that cannot be overlooked. As a broker, I am constantly asked by prospects if I can “beat another other quote” they got. What does this tell me? For starters, it tells me that the client is purely motivated by price. It also tells me that the time and effort I put into quoting and writing a great policy for them will mean nothing when the policy comes up for renewal, because if you gain a customer on price you will eventually lose them on price. Lastly, it tells me that the client is not loyal, and when the client jumps from company to company every year it also tells prospective insurance companies that the client isn’t loyal. I’m going to let you all in on a little secret – when I quote policies, one of the questions that all of my carriers ask me is “how long has the prospect been with their current company”. The reason they ask this is because they want to determine if the client is loyal or not. And, if you already didn’t put the pieces together, the loyal ones get quotes a better premium than the ones that constantly shop around. So there you have it, the upside of loyalty coming right from the horses mouth.

Buy Smart, Buy Local