Embedded insurance is an attractive offering for auto shoppers, according to a study from Polly, with 72% of recent car buyers saying they would like the chance to purchase their insurance at the dealership. Millennials involved in the study were the most open to different insurance purchasing channels, and 64% said they were likely to buy their auto insurance from a digital platform at a car dealership.
Buyers are getting frustrated with the old way of purchasing insurance, and 45% of those surveyed agreed buying coverage is a confusing process. Polly’s study suggests embedded insurance could not only simplify the purchase process and allow buyers to see their total cost of ownership (including insurance) while shopping, but also presents an opportunity for dealerships to diversify their income sources.
“It’s not surprising that consumers are focused on total cost of ownership, including insurance, now more than ever,” Wayne Pastore, president and COO of Distribution for Polly, said in a release. “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.”
Despite the desire for embedded options, 42% of recent buyers told Polly their dealership didn’t do anything to connect them to an insurance resource when they purchased their last vehicle, though 83% agreed their satisfaction with the buying process increased when insurance options were available while making their purchase.
“Consumers are actively shopping their insurance to combat premium hikes,” Jeff Mongeon, co-founder and head of carrier relations for Polly, stated in a release. “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.”
Polly is on a mission to offer people a better way to buy insurance, by embedding it into life’s biggest, most important purchases, like a car or a home. Instead of having to buy a car in one place and insurance in another, Polly embeds 30+ top insurance choices into the car-buying process. Get insurance options from...