The Auto Insurance Business is one of the most thriving insurance businesses around. This is mainly because most states dictate that you need to have some sought of insurance for you to be allowed to legally drive.
Auto Insurance Business is borrows from the main idea behind general insurance which is to protect you from financial risks if the unfortunate is to happen. In this case, your car and your passengers. Auto Insurance Business did not just start as a new stream of income for insurance companies. There was a need that was seen: to protect the investment. Business Training in Kenya has more articles
Types of Coverage in Auto Insurance Business
It might have stemmed from the point of protecting the investment made to purchase a car, but the business has diversified into many areas of interest. Different insurance companies would offer various covers for your car. Auto Insurance Business though, is protected by the regional law that requires some type of insurance for car owners. Apart from this, Auto Insurance Business has introduced many other products. Let’s look at the most common products in insurance:
Liability Insurance: This type of cover takes into consideration if you are at fault, that you will be able to compensate (from your insurance company) the harmed party.
Collision Insurance maintains that you will be paid for damages that result in an accident caused by you. This has more features than the Liability insurance and you can find out more from your insurance company.
Third Party insurance makes it that your passengers are covered for any injury or fatality that can occur during an accident. It can be a financial burden to cover for the expenses of those who don’t have an insurance cover. It is good to get this cover.
Another cover that is offered by an Auto Insurance Business is the comprehensive cover. This covers you for damages that might not be caused by an automobile accident. These include vandalism, theft and fire.
Starting an Auto Insurance Business
For entrepreneurs this is a new revenue stream that can grow any business. It is much easier than any other type of insurance, because it is required by the law. You don’t have to convince clients to buy into an idea of insurance. The law requires it.
You of course need to get familiar with the state laws about operating an Auto Insurance Business. This will help you formulate your terms and conditions for the service.
Not unless you are good at sales and marketing, you need agents who will refer clients to your business. These agents will definitely take a portion of the sales are their commission. This requires you to structure your prices and policies carefully
Auto Insurance Business is a trust business. So start with people who trust you already. These would include your friends, relatives or business colleagues.
This other point should have been the first: GET EDUCATION. Enroll in a short course and learn more about the business and what risks and opportunity it holds. There are several places to acquire this knowledge including the internet. Knowledge will be vital in your Auto Insurance Business.
Adding Other Coverage to Your Auto Insurance Business
This would be ideal if you want to expand and offer your clients other product like the comprehensive cover. Try and see what other companies around you are offering and try to be competitive while keeping your Auto Insurance Business profitable.
Make sure the additional services you offer, you can follow through when compensation time comes. Then you will be on your way to build a formidable Auto Insurance Business.
Tags: Auto Insurance Business, Business Training in Kenya, Collision Insurance, financial risks, insurance company, Liability Insurance, Party insurance