Polly, the leading embedded insurance marketplace for automotive retail, released an in-depth study on car shopper expectations about insurance that found 72% of recent car buyers saying that they would like an opportunity to get auto insurance at the dealership. The study also found that compressed consumer budgets and inflation, along with shifts in insurance buying preferences, are reshaping consumer expectations about insurance in the dealership.
How, where and why embedded insurance is an innovation for our industry
Key Study Insights:
• Dealers are missing the embedded insurance opportunity
Customers want convenience and simplification; 70% agree buying a vehicle together with insurance would make things easier and more convenient. Many dealers, however, aren't yet bringing insurance into the conversation. 42% of respondents said that their dealer didn't do anything to connect them with any insurance options.
• Economic pressure will accelerate the need for dealers to diversify revenue streams
Total cost of ownership is to be top of mind for consumers, with over 86% of respondents stating it was important to them. Given the current economy and respondents' anxiety around vehicle purchases, demand for add-ons and dealer protection products is likely to decrease.
• Customers want options when purchasing insurance
Customers are open to purchasing insurance online and in-person at the dealership. Millennials are significantly more likely to engage with new channels, with 64% saying they would be likely to purchase insurance from a digital auto insurance platform inside the dealership. Given that consumers are open to purchasing insurance from different channels, the study underscores the importance of making insurance options available at every step of the customer journey.
"It's not surprising that consumers are focused on total cost of ownership, including insurance, now more than ever," said Wayne Pastore, president and COO of Distribution for Polly, "This is a huge opportunity for dealers to include insurance in the car buying process. If a car buyer saves money through insurance, they could apply it to F&I products or other upgrades. Additionally, embedded insurance can provide dealers with a recurring income stream to help offset expected reductions in overall dealer profits."
"Consumers are actively shopping their insurance to combat premium hikes," said Jeff Mongeon, co-founder and head of carrier relations for Polly. "Our car and insurance buyer study shows that they want options at every step of the car buying journey and that savvy dealers with an embedded insurance partner will have the happiest customers."
Download the study on Polly's website
