Back Nevada Agents giving kickbacks (Rebating) to Car Salesmen

 The other day, I was out marketing. I'm at a used carlot and the salesman asked me" how much do you pay? " He wanted to know, if was I going to pay the same as other agents, $30-50, per policy.
I told him I don't do that.  He then said," we can't use you"

What these agents do, is pad the customers down payment with the kickback.
 $ 150 + 30 kickback = $180 down pymt.

Any suggestions on how to compete with this ?

Yes...do what I did and get out of personal lines....it's only going to get worse.

Hear me now, believe me later,

If this is legal in your state then OK. Otherwise I would report it to the Department of Insurance.

No way you can prove it. It sucks, lot of agencies do this.

Be sure and report the dealership to the Office of Consumer Credit Commission in the state. The dealership will love dealing with those people.

This is another reason that 'dealer referrals' are not worth the time.  My experience with 'dealer referrals' is that the dealers only desire is to roll the car off the lot and get HIS commission. 

My experience with auto insurance in general is that, you do not make any profit until the second RENEWAL. It takes at least that long to pay for the expense incurred in placing and servicing the new customer.

My experience with 'dealer referrals' is that they are usually placed on a monthly payment plan and are doing well if they are on my books to the end of the first policy term.

I don't mind the speculative part of placing the new business, but to add $30.00 to $50.00 of immediate expense to the aquisition cost of a new customer is not real bright. I don't know that this practice is tantamount to rebatng, which is illegal in my jurisdiction it is close, especially if the 'fee' is applied to the insured's down payment on the vehicle.