How to Start a Car Insurance Company

In a world where we both place a lot of value on material worth, and where we are perhaps more reckless than ever, the insurance industry is booming. These are uncertain times and we all want some safety nets to catch us if we fall. And there’s perhaps no part of the industry doing better than car insurance - partially because car insurance is often mandatory and people have no choice but to get it, so they just try and get the best deal possible. 

So if you are considering starting a car insurance company, here are some things you should know to get started.

Scope out the competition

It’s always important to know what the other companies in your industry are doing and offering. Walk around the neighborhood to see who’s there, see who has the highest rating and pops up first on google when you search your area, and just, in general, get a sense of their offers and pricing. This will help you set up your own price list and perhaps spot some gaps in the offers that you could fill. This is an essential part of opening a business and you cannot ever skip this step. It’s never a bad idea to make friends with the competition as well.

Find a niche

Especially if you don’t have an enormous sum to invest in, you should focus on the start of your business on a specific niche and grow from there. Identifying an unsaturated niche will be the hardest step here. But once you do, it will be well worth it. Perhaps it’s aimed at a specific group of people or a particular type of vehicle. Whichever the case, market aggressively to that group and you will soon see if you hit the spot.

Make sure people can reach you

One of the most important parts of a car insurance company is communication and making sure that your clients can reach you when they need you. It’s what you should do if you get in an accident - do a welfare check and then call your car insurance company. A great approach is to make sure people have as many ways to reach you as possible - email, mobile phone, landline, chat operator, social media, texting, and anything else you can think of. This is essential, and all of the ways to reach you should be listed clearly on your website. Speaking of which…

Have a good website

Your website needs to cover two main groups: information for potential customers and information for current customers. Let’s talk about both groups.

Potential customers

If someone is shopping for car insurance and they come across your website, you need to put a loud and clear sign with your best offers. But in case that isn’t what they are looking for, you should make it easy for them to navigate to the information they need. And on top of that, if the information they’re looking for isn’t listed on the site, have an email or contact form clearly displayed on the website so that they can ask you any questions.

Current customers

The next group is people who actually use your insurance. They are coming to the website for two reasons - they either want to check something about their insurance plan, or they are in need of the services and need to get in contact with you ASAP. For them, you need to firstly have the contact details explained at the very first page, and then perhaps have a separate part of the site for the information for returning customers.

Stand out

There are many car insurance companies, and you’ll want to find a way to stand out. It can either be with prices, packages, special offers, or just the way you run business. Whether it’s an all-female run company or perhaps one that donates a part of the proceedings to a charity that helps underprivileged kids pass their driving exams. Give people something that they can connect with on a deeper level than just “people who sell car insurance”. This is important especially in the beginning when you’re starting locally and you really want people to come to you because they feel like they know you and trust you.

Alongside all of this, you will want to have a dedicated team of people you trust to make this business work because running a car insurance company is not a one-man-show. So, if you’re looking to invest in starting this business, get out the pen and paper and start putting together your business plan, because you’ll want to make it shine.

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