As a broker , one of your main missions is to best advise your clients on the most suitable insurance for their business. For VTC drivers, comprehensive insurance offers comprehensive coverage that protects not only the vehicle, but also their business and their peace of mind. However, many drivers are hesitant to subscribe to this formula, often perceived as too expensive. In this article, we offer convincing arguments to demonstrate to your clients the importance of comprehensive insurance for their VTC.
1. Explain the difference between Third Party Insurance and Comprehensive Insurance
To convince your customers, it is essential to start by explaining the difference between third-party insurance and comprehensive insurance:
- Third-party insurance : This is the minimum mandatory coverage, which only covers damage caused to third parties (other vehicles, pedestrians, passengers). It does not cover damage to the driver's vehicle in the event of an at-fault accident.
- Comprehensive insurance : This offers much more extensive coverage, including not only damage to third parties, but also damage to the driver's vehicle, whether the driver is at fault or not. It also covers events such as vandalism, theft, and natural disasters.
Highlighting this distinction helps your customers understand why comprehensive insurance is more comprehensive and offers broader protection.
2. Illustrate with Concrete Cases
Using concrete examples and realistic scenarios helps show your clients the usefulness of comprehensive insurance:
- At-fault accident : A driver collides with another vehicle at an intersection. With third-party insurance, the VTC driver will have to pay for the repairs to their own vehicle out of pocket, which can be a significant expense. With comprehensive insurance, these costs are covered by the insurer.
- Vandalism : Imagine your customer discovers one morning that their vehicle has been vandalized (scratches on the bodywork, broken windows). Comprehensive insurance covers this type of damage, while third-party insurance would not.
- Vehicle theft : In the event of theft, comprehensive insurance can compensate the driver for the loss of their vehicle, allowing for rapid replacement and a rapid resumption of activity.
These examples show that the potential costs of claims can far exceed the cost of a comprehensive insurance premium.
3. Emphasize Financial Protection and Business Continuity
VTC drivers depend on their vehicles for their income. In the event of a serious incident, comprehensive insurance provides financial protection that allows them to continue their business:
- Rapid compensation : In the event of a claim, the insurer quickly compensates for repairs or replacement of the vehicle, thus reducing the impact on the driver's activity.
- Replacement vehicle loan : Some comprehensive insurance policies include a replacement vehicle, allowing the driver to continue working while their vehicle is being repaired.
- Reduced financial stress : Unexpected costs can be very stressful for a self-employed person. Comprehensive insurance minimizes these financial risks, providing valuable peace of mind.
4. Highlight Additional Guarantees
Comprehensive insurance doesn't just cover vehicle damage. It often includes additional coverage that provides additional protection:
- Legal protection : Coverage of legal costs in the event of a dispute, such as contesting a fine or a conflict with a customer.
- Driver's Guarantee : Coverage of medical expenses and compensation in the event of injury to the driver in an accident, even if the driver is at fault.
- 0 km breakdown assistance : Assistance in the event of a breakdown, even at home, with towing to the nearest garage.
These additional guarantees strengthen coverage and offer extensive protection that VTC drivers cannot ignore.
5. Address the Cost Argument: A Profitable Investment
Many VTC drivers are hesitant to purchase comprehensive insurance due to the perceived high cost. It's important to reposition this expense as an investment in their safety and business:
- Cost vs. Benefits : Show your clients that comprehensive insurance premiums, while higher, are more than offset by the benefits in the event of a claim. A single at-fault accident could cost far more than several years of premiums.
- Available Discounts : Discuss possible discounts (bonus-malus, safety device installations, etc.) that can help reduce the cost of premiums.
- Avoid business interruptions : Comprehensive coverage ensures rapid recovery after a disaster, minimizing revenue losses due to business interruption.
6. Share Customer Testimonials and Reviews
Nothing is more compelling than testimonials from clients who have already experienced the value of comprehensive insurance. Share stories of clients who avoided major expenses or were able to quickly resume work thanks to their comprehensive coverage.
- Case Studies : Present real-life case studies showing how comprehensive insurance has made a difference for VTC drivers in difficult situations.
- Customer Reviews : Use positive customer reviews to strengthen your pitch. Personal testimonials add credibility and demonstrate the true value of comprehensive coverage.
7. Educate on Legal Obligations and Customer Expectations
VTC passengers expect drivers to be fully insured, especially for urban journeys where risks are higher. Comprehensive insurance demonstrates the driver's professionalism and commitment to ensuring a safe experience.
- Compliance and professional image : Explain that having comprehensive coverage builds customer confidence and can even be a selection criterion for some ride-hailing platforms.
- Regulation : Although comprehensive insurance is not mandatory, it meets the growing expectations of customers and platform partners.
Conclusion
Convincing your clients of the importance of comprehensive insurance for private hire vehicles relies on effectively communicating the tangible benefits and protections offered. By illustrating with real-life examples, addressing the financial benefits, and emphasizing the importance of safety and business continuity, you can help your clients look beyond the immediate cost and understand the strategic investment comprehensive insurance represents for their business.
At KT Courtage, we're here to help you provide the insights and support you need to best advise your clients. Contact us today to learn more about our comprehensive VTC insurance solutions for your clients and partner with us !