Sealing Business Agreements through Integrated Insurance Arrangements
In a groundbreaking study by Polly, it was revealed that 54% of car buyers had a better experience when insurance options were available at dealerships. This finding underscores the importance of integrating insurance solutions into the car-buying process.
Millennials and Gen Z, in particular, prefer insurance to be included in the car deal. According to the study, 84% of these generations want a seamless purchase process. To cater to this preference, dealers can streamline the integration of insurance into the Financial and Insurance (F&I) conversation by partnering with insurance providers like Polly, Allstate, and others. This collaboration allows F&I managers to offer insurance quotes during the car purchase, enabling customers to compare and purchase insurance before leaving the dealership.
A significant 88% of millennials and Gen Z prefer to compare and purchase insurance on their smartphones. To cater to this preference, dealerships can leverage digital verification tools to digitize the insurance offering. Tools such as Dealerware and Axle enable automatic collection and verification of customer insurance details via mobile check-in and digital workflows, reducing friction and improving accuracy.
By offering bundled financing and insurance packages that consolidate the car loan, insurance, and maintenance into a single monthly payment, dealers can enhance financial transparency. This approach reduces upfront financial burden for customers and clarifies the total cost of ownership, thereby boosting trust and closing rates.
Maintaining post-sale engagement is another key strategy. Linking insurance offers with ongoing service reminders, exclusive perks for insurance holders, and consistent follow-up helps demonstrate continued customer care and generates future business.
Partnering with trusted insurance vendors vetted for compliance and cybersecurity best practices ensures customer data protection while ensuring smooth integration with dealer management systems (DMS). Compliance support is essential to maintain regulatory adherence and customer trust when sharing insurance-related personal information.
Leveraging automaker-affiliated insurance plans, when available, can simplify the process by integrating vehicle purchase, insurance coverage, and claims directly, improving overall customer experience and potentially offering better rates.
By combining these strategies, dealerships can create a seamless, affordable insurance integration that promotes customer satisfaction and enhances dealership profitability. The study by Polly also found that 85% of buyers purchased an F&I product after being introduced to insurance options, demonstrating a strong link between insurance integration and higher dealership revenue.
Educating customers on how lower insurance costs can improve overall affordability and make deals more attractive is beneficial for dealers. The study highlights a shift in car buying, with consumers prioritizing total cost of ownership and in-dealership convenience over brand and technology.
Mike Burgiss, chief marketing officer at Polly, stated that the role of embedded insurance in modern car dealerships is critical, as per the 2025 'Embedded Auto Insurance Study'. By embracing these strategies, dealers can enhance customer satisfaction, improve financial transparency, and drive greater profitability.
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