Polly’s New Report Shows Embedded Auto Insurance Boosts F&I Profit and Lowers Buyer Friction.
Polly released its Q1 2025 Embedded Auto Insurance Report. The report reveals that the embedded auto insurance market for auto dealers shows its strongest growth in recent years. Polly’s proprietary index — insurance policies per engaged car buyer — has nearly tripled since its 2023 low.
More buyers now shop for insurance during the car-buying process and find competitive rates at the dealership. As a result, dealers are seeing a meaningful increase in F&I gross profit.
“As front-end profit continues to shrink, dealerships are seeking new ways to protect profit. Our data shows that embedded insurance is not just a value-add for customer satisfaction, it’s becoming essential to protecting a dealership’s bottom-line,” said Mike Burgiss, chief marketing officer for Polly.
Key Findings in Embedded Auto Insurance Trends
The report highlights several key findings for dealership leaders and partners in the F&I space. Dealerships that offered insurance quotes to car buyers saw 21% higher F&I gross — even without a policy purchase. When customers bought insurance, F&I gross increased by 28% — even when buyers didn’t save money.
The national average insurance quote dropped slightly in Q1 2025 to $195 per month. This shift reflects a small degree of relief in overall insurance affordability for customers.
Market friction — where buyers struggle to find reasonable quotes — has fallen across the board. Now, 19 out of 20 buyers receive competitive insurance offers through embedded solutions.
Looking Ahead to the Rest of 2025
The report outlines several key predictions for the remainder of 2025. Polly expects the embedded insurance opportunity index to continue growing in the coming months. Rate volatility may emerge due to economic uncertainty and climate-driven risk across the insurance landscape.
Dealers should act now to integrate insurance into their sales process to stay competitive and profitable. This strategy helps meet evolving buyer needs and protects overall dealership profitability.
Download the full Q1 2025 Embedded Auto Insurance Report here.
Article originally published on AutoSuccess
Author: Kyle Alexander, Multimedia Journalist
Polly
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...
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