PREMIUM INCREASE TEMPLATE
[Customer greeting],
Just a quick note to let you know that your Auto policy is scheduled to renew on [renewal effective date]. [a) if paper policy]You should receive your renewal offer along with your ID cards in the mail over the next few days. [b)if paperless policy]You should receive an email with a link to your renewal offer and your ID cards over the next few days. I have also attached an electronic copy of your ID cards for your convenience.
With your upcoming renewal, you’re going to see an increase in your premium of [a) if monthly, divide term premium change by 6 or 12 to get]$Xper month, [b) if not monthly], $Xthis term, which is about X%. [Insert an applicable EXPLANATION – samples included below]. [Insert GOOD NEWS – samples included below].
I also took a look at your policy and identified the following options for your consideration:
- [Insert OPTIONS – samples included below]
- [Insert OPTIONS – samples included below]
Once you have a chance to read through your renewal documents, let me know if you have any questions or would like to do a quick coverage review and discuss any options. [a) if automatic payment]If you do not wish to make any changes, your renewal premium will automatically process on [date], so there’s nothing more for you to do. [a) if not automatic payment]If you do not wish to make any changes, you can log into Farmers.com today and pay your renewal premium, or pay when your bill arrives in about a month.
Thanks again for your business. Let me know if there’s anything else we can do for you!
AGENT SIGNATURE
(xxx) xxx-yyyy
[attach the ID card, downloaded from print center]
INTRO WITH UMBRELLA
Just a quick note to let you know that your Auto and Umbrella policiesare scheduled to renew on [renewal effective date]. [a) if paper policy]You should receive your renewal offer along with your ID cards in the mail over the next few days. [b)if paperless policy]You should receive an email with a link to your insurance renewal offersand your ID cards over the next few days. I have also attached an electronic copy of your ID cards for your convenience.
With your upcoming renewal, you’re going to see an increase in your premium of [a) monthly, divide term premium change by 6 or 12 to get]$X(X%) per month on the auto and $X(X%) per month on the umbrella, [b) if not monthly], $X (X%) on the auto and $X(X%) on the umbrella. [Insert an applicable EXPLANATION – samples included below. Sample auto explanations will cover umbrella as well.]
SAMPLE EXPLANATIONS
RATE REVISION ONLY (MISSOURI)
This is not a reflection on you, but a rise in medical expenses and auto repair costs in Missouri has significantly increased claim costs over the past year. The number of accidents is also expected to continue to rise, with low gas prices and unemployment putting more cars on the road. These factors have had an impact on the entire industry, and other insurance companies are filing for rate increases, as well.
RATE REVISION + ACCIDENT SURCHARGE
A significant portion of this increase is the result of the accident you had this term. Once you factor in [high level details of the claim e.g., PD, BI, etc], the total claim payout was $x, [if the claim payout was >$2,000] which is much more than you will pay in additional premium due to the accident. The good news is that if you remain accident-free for three more years, thissurcharge will be removed from your policy.
RATE REVISION + ACCIDENT WITH FORGIVENESS (if the customer has purchased)
Accident Forgiveness kicked in on this renewal and will waive the traditional surcharge for your claim in [Month of Accident], which paid out a total of $X. Accident surcharges can be as much as 35%, so this benefit is paying off! However, there was also a rate increase in Missouri, reflecting a rise in medical and auto repair costs, as well as a continued rise in the number of accidents. These factors have had an impact on the entire industry, and other insurance companies are filing for rate increases, as well.
DRIVER DISCOVERY
Prior to this renewal, Farmers® received notification from the DMV that [insert name] is a licensed driver in your household and may have regular access to your vehicle(s) (you should have already received a letter on this topic). As a result, the cost of insurance for each vehicle on your policy now reflects the fact that [he/she] has been added to your household. If you believe [he/she]should be excluded from coverage on your policy, let's discuss further and I can assist with the necessary documentation.
SAMPLE GOOD NEWS
[if <9% increase]
The good news is that your increase is less than the average in the state.
SAMPLE OPTIONS
Your knowledge of the customer's preferences will help you offer a subset of options that you believe will resonate best. If you plan to include more than one, we recommend listing multiple options in bullet format.
- Different pay plan: “I noticed you’re on a [insert payplan]. We can save you some money if you’re willing to switch to …”. Details for agent reference:
- PIF = 5% discount, $0 installment fee
- EFT = 2% discount, $2 installment fee – $0 fee if customer also goes paperless bill
- If not paperless policy:“Farmers® offers a 2% discount for enrolling in Paperless policy. For your convenience, now you can also sign up to automatically receive hard copies of your ID cards in the mail, while the rest of your documents are sent electronically.”
- If paperless policy:“We now have the ability to enroll paperless policy customers to automatically receive new ID cards in the mail, which may be an added convenience to you at renewal. You also get to keep the discount you have for receiving policy documents electronically.”
- If monthly EFT and not paperless:“Since you’re currently on a monthly pay plan, you can avoid the $2 monthly service fee by signing up for Paperless billing” For agents’ reference:
- $2 installment fee for monthly EFT + paper billing
- $0 installment fee for monthly EFT + paperless billing
- Note: $5 installment fee for all monthly payment plans other than EFT, regardless of paperless billing
- If customer has home with a competitor:“We have a new home product in Missouri with competitive rates. In addition to what you might save on your home, purchasing home and auto insurance from Farmers® would save you 20% on auto. With your consent, I’d be happy to work with you to provide you a multiline quote.”
- Review deductibles / coverages to see if they have low deductible or e.g., opportunities to remove COMP on an old car
PREMIUM DECREASE / NO CHANGE TEMPLATE
[Customer greeting],
Just a quick note to let you know that your Auto policy is scheduled to renew on [renewal effective date]. [a) if paper policy]You should receive your renewal offer along with your ID cards in the mail over the next few days. [b)if paperless policy]You should receive an email with a link to your renewal offer and your ID cards over the next few days. I have also attached an electronic copy of your ID cards for your convenience.
[a) if decrease]With your upcoming renewal, you’re going to see a decrease in your premium of $Xthis term, which is about X%. [Insert an applicable EXPLANATION – samples included below]. [b) no change] I’m happy to report you’ll see no change in the cost of your insurance this year.
Once you have a chance to read through your renewal documents, let me know if you have any questions or would like to do a quick coverage review. [a) if automatic payment]If you do not wish to make any changes, your renewal premium will automatically process on [date], so there’s nothing more for you to do. [a) if not automatic payment]If you do not wish to make any changes, you can log into Farmers.com today and pay your renewal premium, or pay when your bill arrives in about a month.
Thanks again for your business. Let me know if there’s anything else we can do for you!
AGENT SIGNATURE
(xxx) xxx-yyyy
[attach the ID card, downloaded from print center]
SAMPLE EXPLANATIONS
[if child is removed from policy]
This decrease is due in part to the fact that [name] is no longer listed as a driver on your policy.
[if Accident surcharge is removed]
This decrease is due in part to the fact that the surcharge from the accident you had a few years ago has been removed.