Insurance agents: If your customers drive their cars to Mexico, don’t tell them to purchase their Mexican auto insurance at the border!
Mexican auto insurance, sometimes called Mexico ‘tourist’ auto insurance, is not only a great product for earning some extra commissions. Mexican auto insurance can also be a wonderful tool for attracting new customers and for building customer loyalty with your existing clientele. With the help of the internet, writing Mexican auto insurance has never been easier. So if you have customers who drive to Mexico, your agency needs to get appointed to offer Mexican auto insurance.
How to get appointed to sell Mexican auto insurance
There are a number of US based MGAs (managing general agents) who will appoint independent insurance agents to sell Mexican insurance. If you have a valid property casualty insurance license and a current Errors and Omissions insurance policy, most MGAs will gladly appoint you to sell their Mexico insurance products. The appointment paperwork is usually very simple, and the appointment procedure can usually be finalized in less than 24 hours. Some of the better MGAs who have their offices streamlined can have you signed up and ready to sell in less than an hour. Many MGAs have no production requirements, so agents should not feel any pressure to meet sales volume commitments.
How to write a Mexican insurance policy
Mexican auto insurance is one of the easiest products for insurance agents to write. Now that most of the decent MGAs have internet based agency websites, agents can issue Mexico insurance policies in less than 5 minutes. Most Mexico insurance agency websites will allow you to login to your online account using and agent code and password. Once logged in, agents can generate quotes or issue policies in real time. Most agents find that writing Mexican insurance through the internet is as easy as buying an airplane ticket online.
Agents who can benefit from selling Mexican insurance
Many agents incorrectly assume that only agents who are located near the Mexico border will benefit from selling Mexican insurance. Although many Mexican insurance policies are still sold at the border, the vast majority of policies are now being purchased by customers well in advance of their Mexico road trip. In fact, many of the most successful agents who sell Mexican insurance are located in states that do not even share a border with Mexico. Agents in states such as Oregon, Washington, Colorado, and Illinois, are responsible for producing a large percentage of sales for the Mexico ‘tourist’ auto insurance industry. If you have any customers or potential clients who drive their cars to Mexico, you are doing yourself a disservice by not being able to offer this product.
Many of the Mexico insurance MGAs offer between 20%-30% commissions to agents for written policies. For many agents not located near the Mexico border, their clients tend to take longer trips to Mexico ranging from a few weeks to a few months. A three week Mexico insurance policy can easily generate a $200-$400 premium which would result in a $60 to $120 agency commission. Although you may not be able to retire on this revenue, 5 to 10 policies per month would certainly pay more than the electric bill for your office. Some agents may also elect to enhance their commission with a broker fee. And remember, each policy usually takes less than 10 minutes to issue and requires almost no servicing once the policy is issued.
Advantages of offering Mexican auto insurance
Mexican auto insurance can also work as a great marketing tool for your agency. Many agents find Mexican auto insurance to be a great product for attracting new customers. Once the word gets out that your agency can provide Mexican auto insurance, you may find new customers stopping by your office prior to their road trip to Mexico. Once you solve their Mexico insurance need, most customers are happy to discuss the possibilities of working with you for their domestic insurance needs as well. Mexican auto insurance is also a great tool for building customer loyalty and retaining your clients. If you offer Mexican insurance, your customers are less apt to visit your competitor who does offer Mexico insurance.
In summary, if you are looking to grow your insurance agency, or just retain your existing clients, you should seriously consider getting appointed to sell Mexican ‘tourist’ auto insurance. You will most likely find it to be one of the easiest and most advantageous products your have ever sold.