MENU
SEARCHA new DealerPolicy study finds 83% of customers would buy auto insurance as part of their car-buying process — but only 9% were given the opportunity.
Only 9% of respondents said their selling dealer offered assistance with the purchase of auto insurance in a survey commissioned by DealerPolicy.
Photo by Marcel Langthim via Pixabay
BURLINGTON, Vt. — According to a study just released by DealerPolicy, 83% of car buyers want to complete “everything” related to their transaction at one time within the dealership, including their purchase of auto insurance.
Executives said the findings reinforce and expand on well-known trends showing increased consumer demand for a more convenient, more complete, and more streamlined car-buying experience.
Read: Survey: Youngest Car Buyers Visit Most Dealerships
“One hundred percent of your customers must buy car insurance, and 80% are paying too much,” said Mike Burgiss, president of Dealer Solutions at DealerPolicy. “Insurance is one of the only new income opportunities for dealers, and the new DealerPolicy study shows that a majority of your customers are ready and willing for you to make insurance part of your retail process.”
The study is based on a survey of 1,000 consumers who purchased a car within the past six months. The study revealed that car buyers want to see competing insurance quotes from multiple carriers while at the dealership.
“When customers save on their insurance, they have thousands more in buying power for the F&I products in the business office.”
Notably, analysts also found that, if customers could save money on their auto insurance during the car-buying process, they would use the cost savings to purchase a nicer vehicle or a warranty or other F&I products.
“Traditionally, dealers have seen insurance as a problem, but insurance is now a new income opportunity for dealers,” Burgiss said. “When customers save on their insurance, they have thousands more in buying power for the F&I products in the business office. A scalable digital insurance platform that offers customers the top insurance brands offers dealers new income opportunities and increased F&I sales.”
Only 9% of car buyers who took the survey said their dealer offered some form of assistance relating to insurance. Three out of four agreed that their experience would be better if they could purchase insurance from inside the dealership.
“Today’s combination of flattening sales volumes and ever-increasing margin compression means that winning dealerships will be those that find new sources of income while delivering a higher level of customer experience. It’s time to take a fresh look at insurance, not as a problem, but as a new and significant income opportunity,” Burgiss said.
To download the full report, click here.
Originally posted on Auto Dealer Today
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.
Read More →
What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.
Read More →
How can auto dealerships help F&I managers fulfill their vital role in the most effective ways? Industry expert Rick McCormick shares his insights on the best ways to train these professionals and help them maintain good habits.
Read More →
More consumers and businesses are opting for all-season options for various reasons as safety, sustainability and convenience push practical change.
Read More →
It’s time to take the next digital step to free F&I managers to handle the most challenging aspects of customer meetings.
Read More →
Some of it should be given to the customer, but that doesn’t mean the F&I office relinquishes the process. In fact, a different approach both builds trust and boosts sales.
Read More →
Talk to F&I customers like you’d talk to a friend, without industry lingo or sales-like questions, and use hard proof to show, not tell, them about a need.
Read More →
Helping F&I customers understand complementary offerings is likely to lead to more sales, based on the success of a high-performing practitioner of the philosophy.
Read More →