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Beware the Low-Ball Bid

July 31, 2009
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In the competitive insurance business, any number of carriers will "low ball" a bid, dramatically under-bidding other companies in an attempt to buy your business. However, buyers beware: Inferior service and an inevitable increase in rates often accompany low-ball bids. When you put your tire business insurance out for bid, be sure you consider these four components:

1) Service: How readily will you be able to access the carrier’s representatives, and how well are they likely to maintain contact with you? Will you get your questions answered promptly and accurately?

2) Claims handling: Will claims be handled expeditiously, or will they be subject to nit-picking and bureaucratic delays?

3) Communication: What is the quality of the carrier’s communication material, and how much of the communication effort will have to be absorbed by you?

4) Reputation: What other businesses does the insurance company cover? What kind of relationship do they have? What do others say about the particular insurance company?

- Source: Tire Review Business Toolbox

 
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