June 4, 2025
As front-end margins continue to shrink, dealers need new ways to protect their bottom line
Our Q1 2025 Embedded Auto Insurance Report from Polly offers one clear answer: auto insurance in the dealership.
Here’s why…
Dealers who integrated insurance quoting into their sales process saw an average 21% lift in F&I gross profit, even when buyers didn’t purchase a policy. When buyers did purchase, the lift rose to 28%, or $432 per deal.
The data also shows a meaningful shift in market conditions:
- Insurance rates are still very high (national average falling to $195/month), which is prompting customers to look for savings during the deal.
- Quote quality is improving, with 19 out of 20 buyers receiving competitive offers.
- High-cost states like Kentucky, New York, and Nevada remain challenging, but when car buyers know their insurance options during the deal, dealers can keep deals on track.
Looking ahead, we’re seeing a better market than we’ve seen in years for auto insurance in the dealership.
Dealers who act now can lock in process improvements and build better customer experiences.
