Embedding insurance options into the car-buying experience is a wise way to bridge affordability gaps to boost dealership profitability, a recent study shows.
The study by Vermont-based Polly, which provides insurance programs for dealerships, found that significant numbers of consumers, including the youngest car shoppers, are open to insurance products at the dealership, and many even seek it.
The company points out that high vehicle prices, rising auto insurance premiums, and other high consumer costs present opportunities to dealers to help consumers by offering insurance at their stores.
Among other poll results, it found that 85% of car buyers bought a finance-and-insurance product after learning about insurance options at the dealership.
In the millennial and generation Z set, 84% want insurance included in their car purchase, and 73% would pick up more protection products if they saved money on an insurance policy. An even higher 88% favor comparing and buying insurance on their cellphones, pointing up the importance of streamlined technology-based insurance shopping capabilities at the dealership.
Among all car buyers, 54% said they were more satisfied with the experience when the dealer offered them insurance products.
"These findings highlight a paradigm shift in car buying, where consumers prioritize total cost of ownership and in-dealership convenience over brand and tech,” said Polly Chief Marketing Officer Mike Burgiss in a press release on the study findings.
Polly said it’s found a direct correlation between embedded insurance at the dealership and higher F&I profits.
