Study: Bring Auto Insurance into Car Deals

By Staff Writer December 30, 2020

DealerPolicy, an insurance marketplace solution for dealers, unveiled the results from its latest survey of dealers and car buyers about their experience and expectations involving auto insurance as part of the car buying process.

The ‘Automotive Retail & Auto Insurance Trends for 2021’ study surveyed 300 dealership executives and 1,000 consumers who purchased a vehicle in the past six months. Although both categories of respondents agreed that insurance was a necessary part of the buying process, their sentiments differed drastically when it came to accessibility, transparency, and the convenience of auto insurance. Bottom line: dealers have a massively underleveraged opportunity to impact customer loyalty, satisfaction, and their bottom line by integrating insurance into the sales process.

 DealerPolicy CEO Travis Fitzgerald
DealerPolicy CEO Travis Fitzgerald

“We’ve long known that both dealers and buyers view auto insurance as inseparable from the car buying process, but more recently, we’ve examined where the disconnect occurs. The results were astonishing,” says Travis Fitzgerald, CEO of DealerPolicy.

DealerPolicy analysts learned that car buyers themselves believe they would benefit from an integrated insurance option that revealed potential savings. Sixty-nine percent of the buyer respondents indicated they would likely buy a nicer car, and sixty-four percent said they would likely add on F&I protection products, creating additional revenue opportunities for dealerships.

Yet only sixteen percent of dealers had a franchised insurance agent on site, and only nineteen percent connected the car buyer to an agent via phone. It is no surprise then that forty-nine percent of car buyers believe dealers did not assist with insurance at time of purchase, leaving profit and customer satisfaction on the table.

“When it comes to insurance, we developed the DealerPolicy Marketplace because of the positive impact we could have on the car-buying process, a transaction that was in desperate need of speed, choice and transparency. And now, our latest study supports the original hypothesis we had,” adds Fitzgerald.  

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Last modified on Monday, 11 January 2021 18:58