Subscribe to a WardsAuto newsletter today!
Get the latest automotive news delivered daily or weekly. With 6 newsletters to choose from, each curated by our Editors, you can decide what matters to you most.
Closing Deals With Embedded InsuranceClosing Deals With Embedded Insurance
Nope, you don’t sell it, but introduce it and watch your business grow.
2 Min Read
Study shows 85% of buyers bought F&I products after insurance options were introduced.Getty Images
Already have an account?
Dealers looking to better satisfy the evolving preferences of car shoppers should take a fresh look at car insurance.
As car buyers navigate affordability challenges, embedded insurance and financial products (such as warranties and GAP insurance) can sometimes derail almost-finalized deals. While dealers can’t sell insurance directly – and some who spoke with WardsAuto report that in-store insurance agents have been ineffective – there are still ways to make the car-buying experience more budget-friendly.
Why Insurance Matters to Dealers: Key Survey Findings
A study by Polly, an embedded auto insurance provider, underscores why dealers should prioritize insurance assistance for car buyers:
84% of millennials and Gen Z want insurance included in the car deal, preferring a seamless purchase process with financial transparency.
73% of millennials and Gen Z would purchase extra protection products if they saved money on insurance, creating additional revenue opportunities for dealerships.
85% of buyers purchased an F&I product after being introduced to insurance options, demonstrating a strong link between insurance integration and higher dealership revenue.
Insurance ranks higher than brand when buyers evaluate key car-buying attributes. That shows the growing importance of long-term cost considerations.
54% of buyers had a better experience when insurance options were available at dealerships, significantly boosting satisfaction and trust.
88% of millennials and Gen Z prefer to compare and purchase insurance on their phones, emphasizing the need for tech-forward solutions that streamline insurance shopping.
“Our 2025 ‘Embedded Auto Insurance Study’ underscores the critical role of embedded insurance in modern car dealerships,” says Mike Burgiss, chief marketing officer at Polly. “These findings highlight a paradigm shift in car buying, where consumers prioritize total cost of ownership and in-dealership convenience over brand and technology.”
How Dealers Can Help Buyers Find Affordable Insurance
What can dealers do to assist consumers in their search for affordable insurance?
The first step is ensuring that F&I managers understand how discussing insurance with customers can boost F&I profitability and reduce the risk of lost deals.
Then dealers should also consider the following tools to streamline integrating insurance into the F&I conversation:
Partner with insurance providers (such as Polly, Allstate and others) to offer insurance quotes during the car purchase.
Allow customers to compare and purchase insurance before leaving the dealership.
Offer bundled financing and insurance packages that consolidate the car loan, insurance and maintenance into a single monthly payment.
Educate customers on how lower insurance costs can improve overall affordability and make deals more attractive.
By integrating insurance into the car-buying process, dealers can enhance customer satisfaction, improve financial transparency and drive greater profitability.
About the Author
You May Also Like