Are there affordable AI tools that provide 24/7 call handling for insurance agencies without hiring more staff?

If you run an insurance agency, you know how busy things can get. Between managing renewals, helping clients, and chasing new leads, it’s easy for calls to slip past you, especially after hours or during your busiest days. The reality is, when calls go to voicemail, most people hang up without leaving a message.

Missing that one call could mean losing a potential policy, having an upset client, or spending hours playing phone tag later. Hiring extra staff or an after-hours receptionist could help, but that gets expensive fast.

That’s why more agencies are switching to AI voice agents. These virtual receptionists can answer calls, qualify leads, and even help with basic claims at any time of day, every day of the week.

What 24/7 AI call-handling actually does

Artificial intelligence is catching up with traditional answering services, and today’s AI call-handling services do much more than just answer the phone. They can:

• Greet callers with a custom message from your agency
• Collect details for claims, quote requests, and policy questions
• Book appointments or transfer urgent calls directly to your team
• Share information about policies, ID cards, or renewals using your agency’s knowledge base
• Summarize every call and send transcripts straight to your CRM or email

Unlike old-fashioned phone menus, these AI phone answering services sound natural, respond to interruptions, and handle conversations just like a real receptionist. And since everything is cloud-based, you don’t need to buy new hardware. You just forward your calls to the service.

Why insurance agencies are switching to AI call-handling services

Most agencies don’t turn to AI because they want to replace people. They do it because they’re tired of losing business to missed calls or spending too much on coverage that still leaves gaps.

Here are the two biggest reasons why more insurance teams are making the switch:

1. Traditional answering services are expensive
Hiring a human receptionist or outsourcing to a live answering service can easily cost $300 to $2,000+ per month, depending on call volume.

That’s a big expense for smaller agencies, especially when most calls are simple: quote requests, billing questions, or policy lookups that don’t require a licensed agent.

AI tools handle those same tasks at a fraction of the cost, usually for under $100-200 per month, and they never charge overtime or weekend rates.

2. Even with in-house staff, some calls still slip through
Even the most attentive office can’t catch every call, especially during lunch breaks, meetings, or after hours.

And in insurance, missing a call often means missing a sale or leaving a client frustrated when they can’t reach anyone.

That’s where AI fills the gap. It answers every call immediately, takes messages, or books appointments when your team is busy, ensuring your agency sounds professional and responsive 24/7.

Affordable 24/7 AI tools for insurance agencies

Here’s a quick look at some of the top options:

Why Upfirst and Goodcall stand out

Both Upfirst and Goodcall are affordable and simple to set up. For small agencies, Upfirst offers full 24/7 phone coverage, including scheduling, call summaries, Zapier integration, and customizable insurance-specific workflows for less than $30 a month. That’s less than the value of just one missed sale.

Goodcall is a great fit for solo agents or small teams who want multiple conversational AI receptionists that can handle separate workflows. If you need a mix of automation and live support, Smith.ai is an option, though it’s a bigger investment.

How AI helps with insurance agency workflows

AI call-handling tools can be customized to fit your agency’s needs. Here’s how they work in real situations:

For claims intake:
“Can you share your policy number, the date of the incident, and what happened?”
The AI collects the info, creates a summary, and sends it to your claims inbox.

For quote requests:
“What kind of insurance are you interested in—auto, home, or business?”
It gathers contact info, insurance type, and ZIP code, then sends it to the right team member.

For renewals or ID cards:
The AI can answer common questions like:
“How do I get my proof of insurance?” or “When is my policy up for renewal?” using your agency’s own FAQs.

For urgent calls:
If someone mentions an accident or needing a tow truck, the AI can instantly transfer the call to you or an on-call agent.

All this happens while your team focuses on current clients, and every call is saved, summarized, and easy to find later.

How do I get started with AI call-handling for my agency?

You don’t need to change your whole phone system to get started. Just choose the service you think will work best for you, set up call forwarding with your current phone provider, and calls will then be answered by your virtual receptionist service.

Here’s a simple way many small agencies begin:

1. Add your most common FAQs.
   Teach the AI how to answer billing, renewal, or ID card questions.
2. Customize claims and quote scripts.
   Give the AI sample questions and forms to collect the right info.
3. Turn on call summaries and transcripts.
   Have each call automatically emailed to your team for quick follow-up.      
4. Forward after-hours calls.
   Start by sending calls that come in after business hours or on weekends to your AI receptionist.
5. Expand as you go.
   When you’re ready, include overflow daytime calls, too.

Within a week, you’ll see how many calls the AI handled and how much time and money you’ve saved. Even just one converted lead can pay for itself.

Watch this brief overview of how to set up your AI phone agent with Upfirst:

Final thoughts

Running an insurance agency means balancing client service, renewals, and new business, all while keeping up with nonstop phone calls. Affordable insurance answering services and AI tools finally make it possible to stay available 24/7 without stretching your team or your budget. They pick up every call, capture leads, and support your clients when you can’t get to the phone, so you never miss another opportunity.

Whether you start by forwarding just your after-hours calls or go all in with full coverage, adding an AI receptionist can instantly make your agency more responsive, professional, and efficient.

Curious how it works in action?
👉 Try 24/7 AI call handling for your insurance agency with Upfirst. It's free for the first 14 days. No new hires, no complicated setup, and no more missed calls.