By Tracey Schelmetic
When it comes to dealing with insuring their vehicles, car buyers are overwhelmingly happy to let someone else do it. A study conducted by DealerPolicy entitled, “2019 Car Buyer Study: The Role of Insurance in the Modern Dealership” found that 83 percent of vehicle buyers would prefer to handle everything related to their vehicle purchase – including insurance — while at the dealership. The findings underscore well-known trends that have shown increased consumer demand for a more convenient, more complete, and more streamlined car buying experience.
This represents a huge opportunity for dealers, according to a recent interview with DealerPolicy president of dealer solutions Mike Burgiss conducted by Auto Remarketing.
“It’s an overwhelming number,” Burgiss said in the interview, noting that customers “have to put that new car on their insurance somehow.” The customer is “already required to make an insurance decision,” he said. “And they’re required to do that right before they get to the dealership, while they are at the dealership, or right when they get home,” he said.
Another benefit to the dealership cited in the study is that four out of five vehicle buyers said they would use the savings they gained in taking advantage of dealership insurance to purchase a better vehicle.
“When customers save on their insurance, they have thousands more in buying power for the F&I products in the business office,” said Burgiss in the news release announcing the study. “A scalable digital insurance platform that offers customers the top insurance brands offers dealers new income opportunities and increased F&I sales.”
From the study, which surveyed 1,000 consumers who had purchased a vehicle in the last six months, it seems dealerships aren’t taking advantage of customers’ wishes for assistance in vehicle purchase business, including insurance. Respondents noted that they were helped only nine percent of the time by the dealership, even though 83 percent said they 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.