Car Insurance < Financial Services
Royal Sundaram Alliance Insurance Company Limited
Call 91-44-28517387 / 91-44-42227373
Provides an easy and convenient way to buy insurance policy online. Buy health insurance, car insurance, travel insurance, home insurance, and general insurance in India. Visit the site for more business information and details.
Sundaram Towers 45 & 46, Whites Road, Chennai 600 014
The Progressive Corporation
Company into business since 1937 with more than 10 million auto insurance policies in force selling directly to customers online and by phone. Visit the site for complete information and details.
6300 Wilson Mills Road, Mayfield Village, Ohio 44143, USA
http://www.progressive.com/ .. (4614)
Each year there are millions of cars sold all over the world and car safety is something that every car owner is very conscious about. The car insurance business is as big an insurance business any other and comes second only to life insurance in terms of revenue generated. Before we move to understanding how to do a car insurance business let us have a look at what car insurance stands for. Car insurance means that the insured vehicle is insured against loss arising from any kind of accident or theft. The insurance company promises compensation will be paid to the registered owner of the vehicle in return for period payment towards running of the insurance policy.
Car insurance business is much like any other insurance business be it life insurance or health insurance. As for any business you need to have a complete business plan for your car insurance business if you want it to be a success. Chart a business plan and cover points like what is your potential market, what kind of insurance vehicle owners want, market segmentation, competition, financial projections, etc. Once you have a good business plan you can keep track of what steps you have initiated towards achieving your business goals.
In this article we talk about the different business models that you can use to start your own car insurance business. The car insurance business is a highly competitive business and there are many major players with many years of experience and knowledge. It also needs to be understood that vehicle insurance business need millions of dollars in financial investment and getting a license to do such a business is not all that easy. There are many rules and regulations that govern insurance business and people or companies who wish to start a car insurance business have to follow the guidelines in order to get approval for their business. In almost every country there is a governing body or a regulatory authority that lays down strict procedures and minimum standards that have to be met before one can start this business.
You can get an application form which acts as an instrument expressing your interest in starting a car insurance business. Just by forwarding the application form to the concerned authorities does not mean you will be granted a license. The application is scrutinized and reviewed by the members of the regulatory board and a decision is arrived at after verifying different aspects of your application whether to accept or reject your application. You will have to make a mention on how you will bring in the required capital investment for the business, partners in the business if any, the assets and liabilities of the company etc.
If you cannot garner the financial muscle to start your own car insurance but still want to enter this business then you can always take the franchise of a car insurance company. This business model requires just a fraction of the kind of money needed to start a car insurance company. You will need to approach a well known car insurance company in your country and tell them that you can sell their products in your city/state. Car insurance companies have a nationwide presence yet they are always looking to increase their presence to other areas. You would need capital investment in terms of office space for your business, staff and employees to help run your business. The vehicle insurance company will pay you a fixed percentage on every product sale you make. You will have to enter into an agreement with the vehicle insurance company and you will be exclusively selling the car insurance product only for that company. There are of course pros and cons of such a business model and one should understand them in full before signing on a formal intent of business agreement.
There is another business model if you do not want to consider any of the above business models we have mentioned. You can be a car/vehicle insurance agent and do your own business. The great benefit of being an insurance agent is firstly you do not need to have an office space or employees initially, this means you save of business costs. You can get in touch with a car insurance company and express your interest to sell their products. No vehicle insurance company will allow you do to that until you have received formal training and knowledge about their products. Once you have complete knowledge of their products you will be a free agent meaning you are not bound to sell the products of a single company you can learn about car insurance products of other companies and sell it to your clients.
Financial Services > Insurance > Car Insurance
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