The Auto Insurance industry is among the most competitive insurance verticals in the United States. This has allowed drivers to benefit from widely available and affordable policies with auto insurers competing to win over drivers. With car sales recently increasing, there is a high chance that a rising number of consumers have shifted from directly using consulting agents.
What does Auto Insurance cover?
Usually auto insurance covers liability (damage to persons or their property), damage to your car, medical expenses and situations in which an uninsured motorist may injure you or damage your property without being able to pay for damages. Coverage varies from state to state and its scope depends on the policy you purchase.
State of the Auto Insurance Industry 2013
On average, auto insurance expenditure decreased from 2007 to 2011 with a drop from $799 to $797. The highest average car insurance expenditures were in New Jersey, the District of Columbia and Louisiana. Customer satisfaction within the auto insurance industry was at an all-time high in 2012. Nevertheless, a recent study by JD Power suggests that customer satisfaction has decreased in 2013 due to premium increases. There also seems to be a correlation between premium increases and the switching of customers to new auto insurance companies. A switching rate of nearly 18% was observed for customers whose premiums increased between $51 and $100 (JD Powers, 2013)
Auto Insurance Lead Generation
Moreover, consumer behavior in the auto insurance vertical has changed in recent years. The internet has gained much significance and consumer have shifted from directly consulting agents and insurance providers to a more indirect model of interaction to find the best car insurance rates. In fact, consumers increasingly use online forms to obtain auto insurance quotes these days. Auto Insurance lead generation allows online car insurance shoppers to transfer their sales inquiries to auto insurance companies. Nevertheless, shopping online for car insurance has also brought many disadvantages with much distrust among players in the industry.
In order to boost auto insurance lead generation, it is important to provide potential consumers with high-quality content and information that is useful to them. This is a great advantage in trying to weed out people who are actually interested in auto insurance. Many people submit false information to find auto insurance quotes in order to shop around or get insight into a ballpark figure for car insurance.
That’s why an important factor in auto insurance lead generation is quality control. Lead scoring and verification methods are essential in obtaining correct and usable auto insurance lead data. The insurance industry has often identified lack of quality as the biggest issue within lead generation. The higher quality auto insurance leads are, the more likely they are to have successful conversion rates. Auto insurance leads offer themselves for cross-selling tactics for consumers who are also looking for home insurance or pet insurance.