Home » Contact Us » Auto Insurance Quotes – How lead gen companies work

Auto Insurance Quotes – How lead gen companies work

Looking to save some money on Auto Insurance but not willing to go through the hassle of finding a good auto insurance company? Filling out a form for an Auto Insurance broken such as Auto Quotes Direct is one of the best things you can do as a consumer.

What is it?

Check out this amazing offer for great auto insurance from the pros for an easy way to get quotes on your auto insurance. Auto Quotes Direct offers a unique service where they will present your individual case to different companies who will have to compete for your business; they are not going to be able to overcharge when there is pressure to match the offers that other companies would. It is a win-win situation for the buyer and the insurance companies as both parties are getting what they want. The insurance company receives a new customer and you get to have companies begging for your business and competing with each other to get you the cheapest quote possible.

Lead gen defined

There are some similar companies in the space of lead-generation that offer a similar type of deal where the consumer and the company are agreeing to a mutual compromise. When a mortgage broken gets you a loan from a bank for example, there is some significant competition for your loan if you are a qualified buyer; the banks must compete for your business as a client for the loan which can drive the actual interest rate that you are liable for dramatically; banks will undercut each other to get the best loan out there and hopefully earn your business as a customer.

Auto insurance lead gen, the problem for companies

The same goes for an auto insurance lead generation company where there is competition driving the best possible quote for your auto insurance policy. By bringing together many different companies that must then offer quotes that are competitive against each other, there is a healthy competition that can drive the cost of auto insurance way down. In fact, many auto insurance brokerages offer incentives to clientele for renewals to ensure that there is no drop off in repeat business with their customers. By offering loyalty incentives, brokers can hope to keep clients from filling out lead-generation forms that would require the brokerage to offer the same service they already do to the same client but at a lower price and therefore at a lower profit margin.

Take Jane, for example

An example would be where a client has been working with a specific auto insurance company for a few years, and then sees a TV ad offering a lower price on auto insurance. Out of curiosity, the customer, let’s call her Jane will call the number that appears on TV and provide the lead generation company with some close to anonymous information, such as her zip code and type of car she uses and her first name. The company will then go ahead and let her know that there will a few calls coming in from companies interested in lowering her monthly rate on auto insurance while maintaining the same amount of coverage should that be necessary. Jane is happy but skeptical, and ends the call. Now is when the companies start the bloody battle with each other to call Jane and see if they can get her a better price on her auto insurance, while simultaneously undercutting peer companies or reaching Jane before the other companies get a chance.

The behind-the-scenes

Auto insurance brokerages will now start the battle for Jane’s important information and head over to a list of “leads”, or customers like Jane that are potentially interested in car insurance. The brokerage will then pay between $5-50 dollars for Jane’s information that was filled out online or from a TV/Radio ad. Once payment is processed, the lead will become “Exposed” to the company, and the brokerage will race other companies to call Jane first and avoid the conflict of competing head to head with another company. The lead generation service will sell the lead to up to 5 different companies, creating a lot of competition for Jane’s business because the brokerages buying the leads are very interested in monetizing their investment in the lead. The first company to “close” Jane on the phone will profit from their investment, and the other companies who bought the lead for Jane’s business will have to move on to the next lead and hope that they either reach her before the other companies can, or offer Jane a better deal. Jane is in a very good position because of this process, as companies are literally battling each other for her business and will offer her deals that she simply cannot get without that extra edge.

The Consumer Wins

Jane now has a much better quote on her auto insurance and did not even have to give up any of her coverage that she had from the previous company. This is due to the nature of the business; companies were forced to invest in Jane before they had a chance to sell her on any of their services, and Jane was able to get car insurance at a far better rate than other companies could have hoped for. Jane is in a unique position that has not been around in the recent years, and because of this new transparent layer of auto insurance quote wars, insurance premiums are starting to go up for those who do not take the lead-gen route. By driving up the competition on leads, prices for auto insurance quotes, and offering consumers auto insurance and record low prices, the consumer is now in charge in the industry that used to be dictated by giants.

 

© 2017 Car News, New Cars, Car Reviews. All rights reserved.