So you’ve got your auto insurance agency up and running, but now you need contracts with auto insurance carriers to sell your products. As a new entity in the field, how does one go about setting up appointments with insurance carriers?
The first route is to set up an appointment by calling a carrier and letting them know you’re an agency looking to sell their product. It’s important to know that carriers are probably not going to help you out unless you have some volume of reliable customers, first. This may not be an option for someone who has just opened and hasn’t built up their clientele.
A second route is to join an alliance or insurance cluster. This is a large agency that you work under. The agency has established contracts with auto insurance carriers, allowing you to not worry about doing all of that legwork.
If you have carriers in mind that you want, make sure the alliance you sign up with has contracts with those carriers. Also, it’s important to make sure that the alliance has a reasonable commission split. While you won’t get 100% commission, you have to pull in revenue for your own business, too.
Whichever option you go with, make sure to do your research and meet with others in the industry. You will gain a better sense of direction or figure out if your plan is workable.