
Young Buyers Urge Dealerships to Offer In-Dealership Insurance Options
With affordability remaining a crucial factor in the car retail industry, insurance costs have taken center stage as they influence vehicle sales considerably. Recent insights from an embedded automotive insurance marketplace, Polly, reveals that younger car buyers, particularly millennials and Generation Z, are inclined towards securing their vehicle insurance directly at dealerships. This trend, identified in Polly’s 2025 Embedded Auto Insurance Study, underscores the growing demand for streamlined insurance processes within car purchase journeys.
Survey Results Highlight Shifts in Car Buying Preferences
The survey collected data from 1,023 Americans who had recently purchased a car from a franchise dealership, highlighting fascinating trends. A resounding 84% of millennials and Gen Z buyers expressed a preference for buying insurance during the car purchase, marking an almost 20 percentage point increase over other age groups. Furthermore, 73% of these buyers would be willing to purchase finance and insurance (F&I) protection products if presented with insurance savings. This suggests dealerships can harness this integration for higher F&I gross profits.
The Impact of Embedded Insurance on Vehicle Sales
Polly’s analysis on over a million dealership transactions indicated an 18% increase in gross profits when insurance was offered on-site, emphasizing the potential for enhanced dealership revenue. Moreover, 52% of respondents and an impressive 69% of millennials and Gen Z reported likelihood to opt for premium vehicles or extra features if insurance savings were involved. These insights signify a paradigm shift towards prioritizing comprehensive costs and convenient purchasing experiences over traditional brand loyalty.
Future Trends in Auto Retail
As embedded insurance becomes increasingly significant, the results also showcased the importance of technology for modern car buyers. Nearly 94% of participants reported higher satisfaction with their purchase when a digital insurance app was available at the dealership. As consumer expectations evolve, dealerships may find it advantageous to integrate tech-driven insurance solutions, aligning with preferences that favor ease and cost-effectiveness.
Historical Context and Background
The practice of embedding insurance into vehicle sales isn't entirely new, but its prominence has grown with advancements in digital platforms and shifting consumer preferences. Traditionally, buyers needed to navigate the insurance process separately, extending the time and complexity involved in acquiring a car. However, technological advancements have streamlined this process. Today, in-dealership insurance offerings cater to a growing consumer base seeking comprehensive and efficient car buying solutions.
Actionable Insights and Practical Tips
For dealership owners looking to capitalize on these emerging trends, it's essential to offer seamless insurance options alongside vehicle purchases. Investing in tech platforms that link insurance solutions directly into the sales process can enhance consumer satisfaction and boost sales margins. Additionally, training sales staff to present these opportunities effectively will ensure they are well-aligned with evolving consumer expectations, allowing dealerships to stay competitive and profit-driven.
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