Handling Customer Objections in Motor Insurance Sales
Every insurance agent faces objections like “Why is the premium so high?” or “I don’t need comprehensive cover.” These objections are not rejections—they are opportunities to educate, clarify, and build trust.
The IC-72 Motor Insurance study text emphasizes that handling objections is a core sales skill, and doing it ethically builds stronger customer relationships.
🔑 Common Customer Objections & How to Handle Them
1. “Premium is Too High”
Customer Concern: They feel the cost is not justified.
Agent Response: Break down the premium into daily cost. Explain IDV (Insured Declared Value), add-ons, and how coverage saves lakhs in case of accidents.
👉 Example: “Your premium of ₹15/day protects your car worth ₹8 lakh against theft, accidents, and natural disasters.”
2. “Third-Party Policy is Enough”
Customer Concern: They want to buy only the mandatory cover.
Agent Response: Educate about risks not covered—own damage, theft, natural calamities.
👉 Example: “A third-party cover won’t help if your car is stolen. A comprehensive policy ensures peace of mind.”
3. “Claims Are Never Paid”
Customer Concern: Negative perception due to others’ bad experiences.
Agent Response: Share real claim settlement examples. Explain claim process and role of surveyors. Stress add-ons like Zero Dep, Engine Protect for hassle-free claims.
4. “I Don’t Have Time for Documentation”
Customer Concern: Busy customers avoid lengthy paperwork.
Agent Response: Offer digital solutions—online KYC, instant policy issuance, and WhatsApp document support.
👉 Highlight IRDAI’s push for online policies and renewals.
5. “I’ve Never Had an Accident, Why Buy Extra Cover?”
Customer Concern: Overconfidence about driving skills.
Agent Response: Use relatable scenarios—natural calamities, theft, or third-party liabilities.
👉 Example: “Even the best driver cannot prevent a tree falling on a parked car.”
6. “Other Companies Offer Cheaper Premiums”
Customer Concern: Price comparison.
Agent Response: Highlight value, not just cost—cashless garages, faster claim settlement, trusted brand, and service quality.
👉 Share IC-72 insight: Quality service and customer delight are as important as price.
🎯 Tips for Agents to Master Objection Handling
Listen First – Don’t interrupt; let the customer explain fully.
Empathize – Show understanding of their concern.
Educate – Use simple examples, infographics, and stories.
Highlight Benefits Over Features – Show how insurance solves their problem.
Stay Ethical – Never hide exclusions or over-promise; mis-selling leads to penalties.
Follow Up – Sometimes objections need time; a gentle follow-up wins trust.
✅ Conclusion
Handling objections is not about “winning an argument”—it’s about building trust through education and empathy. Every concern a customer raises is a chance to show your expertise and create long-term loyalty.
👉 Pitch Line:
“Objections are questions in disguise. Answer them with honesty, and you don’t just sell a policy—you win a relationship.”