Program spotlight: Personal Auto insurance
That young twenty-something who’s just moved out of her parents’ home and bought her own car now needs personal auto insurance. Or that thirty-ish driver who’s been flying under the radar with no coverage, now admits he needs a policy. It can be difficult to find adequate coverage for prospective policyholders like these, no matter where they’re located.
But if they’re in Michigan, Alabama or Georgia (and other states coming later this year), Arrowhead can cover them.
Reason #1: Our Personal Auto insurance requirements are more flexible
“We serve a niche market with an “A” carrier by insuring people with no prior and basic limits,” explains Todd Drake, marketing vice president for Personal Auto. “We only run MVR. We don’t run credit checks or CLU.”
“Quite often, prospects for personal auto insurance with no prior are turned away by other carriers,” added Aaron Ruiz, business development specialist for Personal Auto. “We say, ‘If you can’t get insurance, come to us.’”
In conjunction with carrier Falls Lake National Insurance Company, rated A by A.M. Best, Arrowhead’s Personal Auto Program offers requirements that are much more flexible than many other carriers. The policies offer basic limits: “Whatever the state minimums are – and they vary by state – that’s what we offer,” Ruiz explained.
“This new prospect may have bad credit. Or has never had a policy in his/her name. That’s our sweet spot,” Drake added. “And in spite of our more flexible requirements, our pricing is still good.”
The program is open to U.S. and internationally licensed drivers with clean driving records; it also accepts drivers with violations and accidents.
Reason #2: We offer a multitude of payment options
We offer some really low-down pays, when compared to our competitors who sell personal auto insurance. We make it easy to pay over time, which is what many of our clients request. Payment options include EFT, credit card, debit card, checks and money orders that can be paid by mail, online or by phone.
Reason #3: We offer multiple discounts
Discounts we offer to qualified drivers include multi-car, proof of prior, stability, renewal and paid-in-full.
Reason #4: Our online system completes the process fast
Unlike other carriers who run credit checks and CLU reports, we only require an MVR, so there’s less paperwork and waiting for reports. Our one-touch POS system allows producers to quickly rate, quote and bind online. Once the policy is purchased, there are few-to-no follow-up hoops for the producer or insured to jump through. “The whole process has been streamlined for our producers with minimal paperwork requiring a minimal amount of time,” explained Drake. “Here’s one example: there’s no taking photos of the vehicle (unless they said there’s damage).”
“Our agents love how easy our endorsements/changes are done – all online and happen immediately,” Ruiz added. “They can collect the extra premium from these changes right away. What used to take 30 days now takes 30 seconds. Our POS system is really streamlined. They’re able to go from quote to bind within a matter of minutes.”
Marketplace trends – and how Arrowhead is responding
Read any industry publication and it’ll tell you: Personal Auto insurance business is going online. Consumers want the ease of doing business online. Thus Arrowhead is in the process of expanding our online capabilities.
“We’re urging our producers: Start selling online to maximize your sales potential with us,” Drake said, adding that the team is currently working to provide agencies with the ability to sell online. For more information or to get started, contact your business development manager:
Advice from our underwriters on selling personal auto insurance
To get the most hits on Personal Auto insurance, our underwriters advise producers to focus on single drivers with a single vehicle, wanting liability only in the three states we write in. “That’s where we’re most competitive,” Ruiz explained. He added that Falls Lake is working with us to add new states, hopefully in late 2019.
Why have we focused on Michigan, Georgia and Alabama? “It’s where we’re most competitive, and it’s where demand is highest, with Michigan being the highest demand of the three,” he said. “We’re also quite competitive in Alabama and Georgia, and we have history of writing policies in these states, along with long-time relationships with many agencies.”
More advice from our underwriters: Producers, we want to see you collecting money on the endorsements you do, so you can get paid right away for your work. As you know, many endorsements create a change in premium amount, whether it’s adding a vehicle or an address change. Our system prompts producers to collect the change in premium amount at the time the endorsement is created. Too often producers put it off – and then their insured cancels or doesn’t renew the policy – so the producer never receives payment for that endorsement.
Learn more about Arrowhead’s Personal Auto Program.
Not yet appointed to write Personal Auto insurance in Alabama, Georgia or Michigan? Start your appointment.