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DealerPolicy Study Shows Car Buyers Looking to Purchase Auto Insurance as Part of Car Buying Process

The study revealed that car buyers want to see competing insurance quotes from multiple carriers while at the dealership. 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.

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According to a study just released by DealerPolicy, 83% of car buyers want to complete everything related to their car purchase at one time within the dealership, including their purchase of auto insurance. 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. 

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The first annual 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 and showed 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,” said Mike Burgiss, president of dealer solutions at DealerPolicy. “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.”

Car buyers who took the survey shared that they were only helped 9% of the time by the dealership, even though over 80% would prefer to handle everything at the dealership. Three out of four people agreed that their car buying experience would be better if they could purchase insurance from inside the dealership.

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Burgiss continued, “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.”

For more information, read the full study at www.dealerpolicy.com/2019-car-buyer-study

Links:
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