For insurance agents

Telling a client their rate went up

Most agents lose this one by explaining too much. A client facing a higher premium wants to know three things — how much, why, and what you are doing about it — and every extra paragraph reads as justification.

When to send it

Before the bill arrives. A client who sees the number first is already angry when they read your explanation.

What it has to do

• Gives the new number and the difference. They will work it out anyway; doing it for them is a courtesy.
• Explains the cause in one sentence. Carrier-wide, state-wide, claim-driven — whichever is true.
• Says what you already checked. Discounts, deductible options, other carriers if you have them.
• Leaves the decision with them, explicitly.

What to avoid

• Blaming the carrier in a way that implies you would have done differently. You placed the policy.
• The word 'unfortunately'. It signals a form letter and everyone has read a thousand of them.
• Offering to re-shop before you have actually looked. If you say it, do it that week, or do not say it.

A worked example

Hi Tom,

Your auto renewal came in at $1,840, up $212 from last year.

This is a state-wide increase from the carrier, not anything specific to your policy or your driving — repair and parts costs have moved and they've filed accordingly.

I've already checked: you're getting every discount you qualify for. The one lever left is the collision deductible — moving from $500 to $1,000 takes about $140 off the year. Whether that's worth it depends on how you'd feel writing a $1,000 check, which is your call, not mine.

Want me to run it either way?

Richard

Names and details here are invented. Written the way an agent would actually send it, not the way a template would.

More like this

• The renewal reminder email that starts a conversation
• What to write when a claim is denied
• Following up on a quote without nagging