If you ask most carrier marketing representatives or agents, they will tell you that only the lowest quote presented in the comparative rater can be sold. In other words, the lowest price always wins.
In actuality, we have found that the correlation of number of policies sold and lowest quotes is around 50/50. In almost half the cases (49%) of new business policy sales, the carrier that wrote the policy did not have the lowest quote.
In reviewing tens of thousands of new business policy sales by nearly a thousand agencies during the first half of 2014, we were able to see a few key patterns emerge with respect to writing personal automobile policies:
Which Quotes Get Written?
We learned there is more price elasticity than many carriers may believe when it comes to personal automobile polices. For example, more than 1 in 5 policies written (22%) resulted from the second lowest quote.
How Much More?
Clearly, there are a lot of factors that go into picking the best policy for a customer. However, our findings show that the odds of selling a new policy when you have the lowest quote is still no better than the odds of a coin flip. So which do you pick, heads or tails?
If you are curious about our findings or are interested in learning more about EZLynx data, please contact Brady Polansky by email at [email protected] or call (972) 410-3856.