MENU
SEARCHStudy shows more consumers, particularly the youngest and those seeking service, have interest in embedded policies.
Fifty-seven percent of consumers shopped around for auto insurance in the first quarter, the highest rate in decades, J.D. Power said.
Pexels/Kindel Media
As more consumers shop for auto insurance, despite rates falling as 2024 progressed, a growing number say they’re interested in embedded policies from auto dealers or automakers.
The J.D. Power research, conducted from April 2024 through this past January, found that 37% of nearly 13,000 survey respondents say they’re interested in embedded insurance.
The growing interest is most prevalent among generations Y and Z and – 47% – and those desiring service – 48%, J.D. Power said.
The development may not bode well for the traditional insurance industry, said J.D. Power Managing Director of Insurance Business Intelligence Stephen Crewdson.
Auto insurance rates were up 13% as 2024 got under way, but the inflated prices fell through the months to end the year up under 2%, according to J.D. Power data.
The upward push nevertheless moved many consumers to shop around to try to get less expensive policies last year, 57%, for the highest rate in the study’s 19-year history.
“As rate activity began to fall in the second half of 2024, many shoppers were successful at finding lower-priced policies,” Crewdson said in a report on its research.
“That combination of increased shopping and less rate taking created a bit of a snowball effect for much of the year, but we are seeing signs that shopping rates are starting to normalize.”
Other trends J.D. Power observed in its research include more insurers offering telematics-based programs this year that tie rates to safety and mileage, though the 17% rate is down from 22% in 2023. A third of consumers shopping for auto insurance want to bundle it with homeowner’s coverage.
DIG DEEPER: Helping Customers Understand Gap Insurance Benefits
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 →
Ethical F&I Manager's Conference will take place at The Cosmopolitan Las Vegas on April 13–15, 2026.
Read More →
EFI 2026 will take place April 13–15 at The Cosmopolitan Las Vegas.
Read More →
In this video, Reese Dailey explains how effective follow-up drives better results across the dealership, including increased sales, higher F&I penetration, and stronger customer retention.
Read More →
‘So You Think You Can Do F&I’ is a live role-play contest taking place at the 2026 Ethical F&I Managers Conference.
Read More →
It may be human nature to back off when a customer seems to say no to a product or service. But experts say F&I managers should operate as though the answer will be the opposite.
Read More →
Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.
Read More →
