It's a newer yet controversial discount. Let's review how to approach it!
Usage based driving apps are becoming more and more mainstream, but, for many agents, explaining the value can be a challenge. As auto rates increase, recommending usage based driving apps is becoming a necessity in agencies. In our article on how to stop a personal lines re-market, we review how to apply all discounts before approaching a re-shop.
Assumptions About Usage Based Driving Apps
You may hear the following assumptions about usage based driving apps:
- People don't want "big brother" watching them.
- They assume that rates will change based on their driving.
- Some people assume that they need to install something in their vehicle as many first generation usage based apps required installation.
With anything new people may have assumptions that aren't accurate.
How to Clearly State the Value of Usage Based Apps
With anything that is complicated to explain, you want to practice the following approach:
- 2 Sentences
- 1 Question
This approach works because you can officially engage the client in the solution and proactively get their feedback to best adjust your course of action. Here is an approach you can take:
While I have you on the phone if I find any missing discounts or coverage weaknesses, may I bring them to your attention?
When you do this, you alert the client and get their buy in on bringing up any recommendations. Next, you can go in for the approach.
Your carrier has a new discount that I'd like to alert you to. There is a new discount that rewards you for great driving. Would you like to hear more?
Wait and listen for their response.
Your carrier has APP NAME. It will reward you for staying within your annual mileage, appropriately breaking, and driving mainly before midnight. It's a great program that is really helping people like you. Have you heard of this?
Wait and listen.
To get started, all you have to do is.... From there you will get an immediate discount of X. Each renewal, based on your performance, you will get additional discounts. Would you like me to get that started for you now or at renewal?
Key: assume the usage with the phrase "now or at renewal."
Be quiet and let the client respond. They will either respond with a yes or a question. You can refute their questions.