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.
“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.