Objections in insurance are a natural part of the sales process. A good agent listens to the customer and hears what they are saying. 

Then be prepared to overcome the insurance objection. It is important to remember that if they present an objection in insurance, they want to do business with you; they just aren’t clear that you have provided the right solution. 

You should always be working on ways to improve your sales skills. 

As we build relationships with customers, we must learn about their buying styles and who the decision-maker is. 

We should treat all quotes as an opportunity to educate and inform our clients on not only the coverage options available to them but also the discounts available to them. 

The following scenarios will help you see different ways to overcome various objections in insurance.

An objection is not a rejection; it is simply a request for more information. ― Bo Bennett

Scenario 1: QUOTING MORE THAN ONE LINE FOR A NEW BUSINESS CUSTOMER

In this example, we will review a client that is buying a new home and has called the agency for a quote. 

Agent: Congratulations on getting a new home. We are so excited that you have reached out to us for a quote! I know that every dollar counts when you buy a new home, so I will ask you some questions so we can uncover any discounts you might qualify for. Is that OK with you? 

Client: That sounds good. 

Agent: Our best quotes are when we combine your home and auto. Where are your autos currently insured? 

Objection 1: One-track mind

Client: I didn’t call you to talk about my autos. I called about my home. 

Agent: I completely understand that; however, as I stated, we can normally get the best rate on the home when we look at the home and auto with the same carrier. There is no obligation to move your auto coverage. I would just like to show you what options are available to you. 

Are you OK with not getting the best rate possible? 

Client: I guess it won’t hurt anything to look at both options.

Objection 2: Likes Current Agent

Client: I have insurance with the XYZ Agency and have been there for years. 

Agent: Would you mind telling me why you are contacting us for a home quote? 

Client: XYZ Agency could not help me with my home because of XXXXXXX….

Agent: That’s too bad. We cannot always help everyone, but we will do what we can to get you a quote. We believe in working hard for our clients. If we are able to find a market for your home, would you allow us to quote your auto as well? It makes sense to have everything in one office; that way, if something ever happened, you would only have one place to call. 

Client: If you can find a market for my home, that would be fine. 

Objection 3: Send me the quotes

The client provides the information requested and then asks for the quotes to be emailed to them. 

Agent: Sure, I would be happy to send over the proposal for you to review. Before I do that, is there anything you have heard that would keep you from moving forward with our quote once you get all the information?

Client: No.

Agent: Then how about I send over the application for you to review? That way you can review it and reach out with any questions before you sign. 

“When you successfully handle objections, you are helping the prospect break free from their own lies.”― Chinmai Swamy

Scenario 2: INCREASING COVERAGE LIMITS AND ADDING ENDORSEMENTS TO EXISTING POLICIES

In this example, we will review a client that is calling in to add a vehicle to their existing auto policy. 

Agent: Congratulations on your new car. I need to gather a little information on the vehicle. If I uncover any potential discounts or coverage that you might be missing, is it OK if I bring them to your attention? 

Client: OK. 

Agent: Great. Tell me about your car.

The client provides year, make, model, VIN, and bank information.

Objection 1: Cost is too high (50/100/25 limits)

Agent: I noticed that your new car was $35,000. Did you realize that if you were to get into an accident with someone that had the same car as you that you wouldn’t have enough coverage to replace their vehicle? Your property damage limit is only $25,000. We can increase that to $100,000 for only a few more dollars a month. 

Client: I cannot afford to spend any more money on insurance. I have a new car payment. 

Agent: I completely understand that budget is important. I can increase your collision deductible to offset the difference in premium. If you were to get into an accident, it would be much easier to come up with a little more money for your deductible than it would be to pay thousands of dollars out of pocket. Wouldn’t you agree? 

Client: Yes. Let’s fix that. 

Objection 2: I don’t need that coverage

Agent: Do you have a loan on your new vehicle? 

Client: Yes, with ABC Credit Union

Agent: Did they offer you Loan/Lease Coverage? 

Client: No. I don’t need that coverage.

Agent: If your vehicle is totaled and you owe more on your loan than the car is worth, did you know that you still have to pay the difference to the bank? This coverage is only $x.xx per month. Wouldn’t you agree that it is worth it? 

Client: OK, let’s add it. 

Scenario 3: ADDING AN ADDITIONAL LINE OF BUSINESS TO AN EXISTING CUSTOMER

In this example, we will look at adding an umbrella to an existing customer.

Agent: I was reviewing your account, and it looks like you would qualify for an additional $1,000,000 in liability coverage for only $X.XX per month. 

Objection 1: I have enough coverage

Client: You are always trying to sell me something. I have enough coverage. 

Agent: I understand that insurance can be complicated. I just wanted to make sure that you really understood what liability coverage is. Liability means something that you are responsible for, like a car accident or if someone gets injured on your property. Our goal is to let you know where there are potential gaps in your insurance protection plan. 

We are trying to protect your investments and make sure that if something was to happen, you would have a better level of protection. An umbrella policy is actually one of the least expensive ways to add the additional protection you need. It also helps to cover attorney costs in the event of a claim. 

You never know how much coverage you will need. Would it be OK if I sent you more information about umbrella coverage along with the application for you to review? Client: That would be OK. 

Objection 2: I have to talk to my spouse

Client: That sounds like a good idea, but I need to review that with my spouse, and they are the ones that handle our insurance budget. 

Agent: I can appreciate wanting to bring your spouse in on this kind of decision. When do you think that you will be talking with them? 

Client: Tonight at dinner.

Agent: Great! I can send the application over for you to review with your spouse. If neither of you has any questions, you can simply sign and return the application. If I don’t see the application in the morning, what would be a good time for me to reach out to you to see what additional questions you or your spouse have? 

Client: Tomorrow afternoon. 

Agent: I will reach out at that time. 

Scenario 4: BILLING OPTIONS – EFT OR PAY IN FULL

In this example, we will have a conversation with a client that is calling in to make a payment by credit card. 

Agent: Thank you for reaching out; it will be just a moment while I pull up your account. How did you want to pay today? 

Client: OK. I want to pay by credit card.

Objection 1: I don’t like to give out my account information 

Agent: Are you getting miles to go somewhere fun? 

Client: Nope, it’s just my debit card. 

Agent: Did you know that if the money is coming out of your checking account anyways, we might be able to save you a few dollars each month by switching you to Automatic Withdrawal? The carrier charges fewer fees when they don’t have to send out a paper bill each month. 

Client: I don’t like people to have my account information. 

Agent: I can appreciate that the security of your banking information is important to you. There is always a chance that someone nearby you could hear your account information as you are reading it to us. Did you know that it is actually safer for the carrier to process the payments directly as they have strong encryption, and you will not have to read your account information over the phone every month?   

Client: I never looked at it that way. How can I get that started?

Objection 2: I like to be in charge of the withdrawal date 

Agent: I love to use my credit card to get all the miles. Are you doing the same thing to go somewhere fun?

Client: Not really. I just like to be able to control my monthly budget; the miles are nice, though. 

Agent: Did you know that your carrier offers a discount if you put your payments on their recurring monthly payment plan? 

Client: I like to be in charge of the date my bills are paid. 

Agent: Budgeting is important, and we would never want you to be surprised by a billing. Did you know that the carrier emails you an invoice in advance and that you can pick your charge date? It also would ensure that you never forget to make your payment and have your policy canceled for non-payment. Should I get that set up for you now? 

Client: I never looked at it that way. Let’s get that started.  

Scenario 5: RENEWAL RATE INCREASE

In this example, we will review someone who has called into the office because the rate on their home policy increased. 

Client: You people are always raising my rates. I haven’t even used my insurance. 

Agent: Thank you for reaching out. I am going to ask a few questions to make sure that our file is up to date and that you are receiving all of the discounts that you qualify for. 

Objection 1: Loss of multi-policy discount

Agent: It looks like you recently canceled your auto insurance that we had placed with the same carrier. Therefore you no longer qualify for the multiple-policy discount. Do you mind if I ask why you moved your coverage? 

Client: I got a new policy from the dealership when I got a new car.

Agent: Maybe we should take a look at your new policy to make sure that you know what you got. I would be happy to take a look at your new policy and review it against your prior policy and alert you to any major differences. Would you be willing to share your new policy with me? 

Client: I can, but I am calling about the rate on my home. 

Agent: Yes, I think we should look at the auto to make sure that it is everything that you thought it was. If not, we can re-quote that with this carrier to get your discount back. If the new auto policy makes sense and you still saved money overall, then it’s a win, right? 

Client: That’s true. Here is my new auto information…

Objection 2: Carrier Rate Increase  

Agent: I know it can be frustrating when you see your rates change and you are unsure why. Let me look into this for you. While I am doing that, have you made any changes to your homes, such as a new roof or any remodeling? 

Client: No. I haven’t had any changes. The rate just increased. 

Agent: OK. It looks like your rate change was due to an increase that the carrier had to file with the state and that the state approved. What that means is that the carrier was paying out more in claims than they were bringing in. The cost of labor and materials has drastically increased over the last couple of years. Have you seen the supply chain issues on the news? 

Client: I have seen that, but that shouldn’t affect me. I pay my policy in full every year. 

Agent: And we thank you for that. I would recommend that you stay where you are, though. Most carriers have gotten very strict on what they will insure. You still have a competitive rate. I would hate to move you to another carrier in order to save a few dollars just to have the new carrier require that you replace your roof or make other costly repairs. 

Wrapping up Objections

At the end of the day, it is up to us, as the agent, to assist the client in the best way possible. This includes overcoming objections in insurance. This means reading between the lines and offering suggestions where needed.

Being sympathetic but not apologizing for things that are outside of our control. Let the customer know that we care about them and the outcome. 

We are the experts, and at the end of the day, they pay us for our knowledge and skill. By talking through different situations with other industry peers, we can sharpen our skills, build confidence, and help customers.   

If your team needs help with overcoming objections, look into our Sales Training Program.