Paying For Premiums: Founding Your Car Insurance Company

Car insurance. Everyone (in most states) needs to have it. This means that your new car insurance company will have a built-in clientele, assuming that you advertise properly. However, before you open your doors for the first time, you’ll need to come up with a proper marketing plan that includes many different things, ranging from affiliation to the name of your company. Of course, you’ll also need a logo, a location, and some employees. We’ll go through all of these steps below. Are you ready to get your insurance company off of the ground? If so, then read on.


Why Choose To Sell Insurance

Insurance is a growing field. There are several different types to pick from, including car insurance, homeowner’s insurance, and even supplemental health policies that cover you when you’re injured and can’t work. With so many options, it can be tough to pick just one to sell. However, one of the easiest options is car insurance. Many states require that people have some sort of car insurance, even if it’s just a basic plan that covers them in case of an accident. For that reason, you should start there. You can always expand if necessary later on. After you’ve chosen the type of insurance that you want to sell, you need to make an important decision – whether or not to become affiliated with a major national insurance company. And if you decide to do this, you next have to choose a company! This option makes running your business easier since you’ll have a set of plans and pricing to work with. Most of the major decisions are made for you, and you’ll have less liability, as the major company takes on most of it. With that said, it also limits your options, because you have to sell their plans – not your own. This is a decision that you’ll have to weigh carefully.



Filling In the Details

Once you have an affiliation, you’re almost ready to open your doors – although you need actually to have doors first. You can place your offices in a small shopping center, on the main street in a historic building, or even in an office plaza. You have many choices, and they all work well. You’ll have to look at the amount of traffic that goes by the building and take that into account. You also need to ensure that it won’t be difficult to get into your parking lot. The number of rent matters as well, especially to a small company. All of these things need to be considered before you sign a lease. Next, you need to pick a name for your business. Many insurance companies just go with the owner’s name. It’s “so and so’s insurance.” This is straightforward and businesslike. You can also choose something based on a local landmark. However, you really shouldn’t get too creative, since you do need to be taken seriously as a company. Insurance is something that is no laughing matter. The name needs to reflect that. You’ll also need employees. It’s okay to start out with just a few, such as a receptionist and yourself, and then maybe one other agent. You’ll need to be certified as an insurance agent (there’s a test involved), and any other agents that you hire should be as well. You can hire people based on their certification, or make them take the test before they start work. You do need some employees though since there’s a lot of paperwork involved in running an insurance agency.



Finding Clients for Your Company

Before you can officially open your insurance agency, you need to have a logo and a website. The logo should be serious in nature. You need to stick with basic, somewhat neutral colors, such as dark blue, dark green, gray, or even black. The logo itself should consist of a nice, calming font, with little decoration. You don’t want something that’s too ostentatious or in your face. Remember that insurance is a serious business. Your logo should reflect that. The logo will be placed on your business cards and your website, so it should work in both the physical and the digital realms. Don’t choose something that’s too textured, as it may not translate well. Think simple. Your website should be designed the same way. You’ll need to have information about your location, your affiliation, and basic contact information it. You might also want to create a blog with insurance based topics. This will help you with your advertising – which is the next thing that we’re going to talk about. You’ll need to advertise for your company. This will help get your agency’s name out there and bring in new clients. Your online advertising can be done through Google, as well as through platforms like Facebook. If your website is well designed and you have a blog with good content, you’ll end up in the top ten hits on Google for your location, which will draw in traffic. You also need to advertise offline. Consider placing ads in your local newspapers and magazines, as well as on the sides of buses and on billboards. All of these will draw attention to the fact that your business exists. If you have an affiliation with a national company, then their commercials will help bring in clients as well. People respond well to television commercials, and you won’t even have to pay for them.



As you can see, there’s quite a bit that needs to be done before you can open your insurance agency and bring in customers. You’ll need to make some important decisions about larger insurance companies, get certified, choose a name and logo, hire some employees, find an office location, and come up with a marketing plan. Although it sounds like a lot (because it is) doing all of these things will make your company a success. And that’s what you really want, right? To own a successful insurance company?

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