Personal lines insurance provides coverage to help lessen the financial burden caused by property loss, injury, or death. Specifically, personal lines insurance covers events that impose financial pressure as a result of loss. Examples of events covered by personal lines insurance include car accidents, floods, tornados, lawsuits, theft, and fire.
Personal lines insurance is one of the most common insurance types purchased. From 2020 to 2021 alone, written personal lines insurance premiums increased 5%. If you’re interested in entering the insurance industry, you might consider a career in selling personal lines insurance.
Personal Lines Insurance Industry Overview
What is a Personal Lines Insurance?
Personal lines insurance refers to any type of coverage that is designed to protect an individual from losses related to properly loss, death, or injury. Common types of policies sold as personal lines insurance cover homes and autos. These insurance policies can provide financial reimbursement or payouts to individuals and their families to cover related costs in the event of a vehicle accident, lawsuit, or even a theft. In contrast, commercial lines insurance covers business and commercial risks.
There are many different kinds of personal lines insurance on the market, with some of the most common including:
- Auto Insurance - Provides financial protection for vehicle owners and renters in the event of covered damage, such as property damage or medical bills resulting from a personal auto accident.
- Homeowners Insurance - Covers a policyholder's home or structure and property from damages related to theft, fire, storm, or other events. It also protects the policyholder from liability claims made by others who are on the property or affected by its use.
- Renters Insurance - Like homeowners insurance, this coverage provides protection to those who rent a property rather than own it outright.
- Flood Insurance - A specific type of personal lines insurance that protects against flooding and related damage. This type of coverage is highly recommended for those who live in known flood plains, as traditional home insurance typically does not cover flooding.
In short, personal lines insurance is a type of property and casualty coverage. The term is used in the property and casualty insurance industry to differentiate non-commercial risks (those covered by personal lines insurance) from commercial and business risks.
Who Are Ideal Customers for Personal Lines Insurance Coverage?
Anyone can benefit from purchasing personal lines insurance. In fact, most people carry at least one type, and many carry several types. For example, a married middle-aged person with children that owns a home and a car may carry a combination of homeowners’ insurance and auto insurance. This person may also have life insurance and health insurance, although these two are not typically considered personal lines insurance.
Businesses, on the other hand, benefit from commercial insurance, including commercial property and auto insurance as well as liability coverage. Every person likely needs some type of personal lines insurance, making the pool of potential customers enormous and brimming with opportunity and potential.
Could You Thrive as a Personal Lines Insurance Licensee?
Working in personal lines insurance typically requires excellent communication skills, especially when speaking with policyholders and potential customers over the phone. Effective agents are engaged listeners and engaging speakers, fully understanding the customer’s needs and instilling confidence through expertise.
Likewise, those working in personal lines must have a solid knowledge and understanding of different types of coverage options (auto, home, flood, etc.) and what those policies entail. Only through this understanding can you match the customer’s needs to the right products.
Depending on the specific position you’re interested in, working in personal lines insurance may only require a high school diploma paired with on-the-job training. Some positions do require a Bachelor’s degree in a business- or finance-related field. Most insurance companies provide extensive on-the-job training, including insurance exam prep, insurance continuing education, and a shared knowledge base to help you thrive in your career.