New Insurance Agents – Getting into the insurance game is like learning to ride a bike—at first, you’re all over the place, trying to stay upright and not crash into anything. Trust me, I’ve made my fair share of mistakes when I started. Some were small hiccups, others… not so much. But over time, I learned that avoiding these early mistakes can set you up for a much smoother ride ahead.
Here are the five most common mistakes new insurance agents make—and how you can avoid them. I’ll share some personal stories too, because let’s be honest, we all learn the hard way sometimes.
5 Common Mistakes New Insurance Agents Make and How to Avoid Them
1. Neglecting Relationship-Building
One of the biggest rookie mistakes is thinking that the sale is the finish line. I used to make this mistake. I’d close a deal and feel like, “Okay, I did it! Time to move on to the next one.” But here’s the thing: insurance is all about trust. Clients want to feel cared for, not like a transaction.
I remember one time I landed a big client. They were thrilled with the policy I set them up with, but a few months later, they switched to another agent because I didn’t follow up. I was so caught up in the rush of closing that I didn’t make time to build rapport or check in after the sale. After all, they’re not just going to remember you because you sold them a policy; they’ll remember you for how you made them feel. And, unfortunately, if you don’t follow up or offer additional value, they’ll probably forget you all together.
How to Avoid It:
Building relationships is key to long-term success. Schedule regular check-ins with your clients. It doesn’t have to be anything extravagant—just a quick call to see how they’re doing, or an email with helpful tips about their coverage. Over time, these touchpoints will build trust and show your clients that you’re not just there for the paycheck, but for their well-being.
2. Overcomplicating Products for Clients
Early in my career, I thought I needed to show off everything I knew about policies—after all, I had worked so hard to learn all the ins and outs of different coverage options. So, when a potential client asked about a policy, I’d throw all the details at them. I’d talk about terms, riders, exclusions, limits… you name it. It didn’t take long for them to start glazing over and tuning out. And guess what? I lost a lot of those sales.
How to Avoid It:
Keep it simple. Break down policies into digestible pieces. Remember, your clients don’t need to know everything—they just need to understand how a policy can help them. Focus on what matters most to them and explain how your product meets their needs. After all, you’re the expert; they’re coming to you because they don’t have time to sift through insurance jargon.
3. Not Leveraging Technology Enough
I get it—technology can be overwhelming, especially if you’re not super tech-savvy. When I first started out, I stuck to pen and paper. Sure, I had a spreadsheet here and there, but I didn’t use it the way I should have. That meant a lot of time wasted tracking leads manually and keeping up with appointments. It was exhausting and inefficient. If you don’t adapt to the tools that can make your life easier, you’re going to struggle.
How to Avoid It:
Embrace the tech tools available to you! CRM systems, lead-generation software, and scheduling apps are game-changers. They’ll help you keep track of clients, follow-ups, and sales. Plus, many of these tools are intuitive, so you don’t have to be a computer whiz to use them. If you’re not sure where to start, ask a more seasoned agent for recommendations or do a bit of research online.
4. Failing to Specialize
At first, I wanted to be the go-to person for everything. Life insurance, health insurance, auto insurance—you name it, I was trying to sell it. I thought the more products I could offer, the more clients I could attract. But in reality, being a jack-of-all-trades actually made me look like a master of none. It took me a while to realize that clients want to work with someone who knows their stuff inside and out.
How to Avoid It:
Find a niche that aligns with your interests and expertise. Are you passionate about life insurance? Focus on that. Maybe you’re into small business insurance—dive deep into that area. Clients appreciate an agent who specializes because it shows dedication and expertise. And let’s be honest, when you focus on a specific area, you can become the go-to person in that field.
5. Not Asking for Referrals
I used to be super shy about asking for referrals. I would land a sale, and that was it. I didn’t want to seem pushy or like I was only after more business. But here’s the reality: your best source of new clients often comes from those who already trust you. Referral programs exist for a reason, and ignoring them is a big mistake.
How to Avoid It:
Once you’ve built a strong relationship with a client, don’t be afraid to ask for a referral. Offer a reward, or just casually mention that you’d love to help their friends and family. If you’ve done a great job for them, they’ll be happy to refer you. And remember, a referral is way more likely to convert into a client than a cold lead, so don’t leave this tool unused.
So, there you have it: five common mistakes that I’ve made (and you might too) as a new insurance agent, along with some lessons I learned the hard way. The key takeaway here is that insurance is a relationship business, and if you focus on building trust, simplifying the process, leveraging tools, specializing, and asking for referrals, you’re already ahead of the game. Don’t rush—take your time, and avoid the pitfalls that can sideline your career before it really takes off.
And trust me, it gets easier. You won’t be perfect at everything from day one (nobody is), but with time, you’ll find your groove. And when you do? It’s a pretty amazing feeling.
