Why Dealers Should Consider Selling Auto Insurance Directly

There’s a good chance your dealership already sells extended warranties and gap insurance. One product that’s less commonly available from dealers? Personal auto insurance.

Selling auto insurance might seem like a headache. But it can help you deliver more value to customers – and bring in more revenue in the process. The key is partnering with independent agents who have the knowledge and certifications to handle the sales process.

Here, I’ll highlight three reasons why you should consider selling auto insurance directly – and how independent agents can help.

Boosting Customer Satisfaction

Every customer needs auto insurance before driving their new car off the lot. But shopping for a policy can be time-consuming – a major headache when the auto market is so hot. With sky-high demand, even a small shopping delay could cause customers to lose out on the vehicle they want.

Selling insurance at your dealership smooths out the car-buying process. You can empower customers to make a frictionless buying decision and drive away with everything they need.

What might direct selling look like? After a customer meets with the F&I team, they can consult with an independent agent in person at your dealership or virtually. The agent can answer policy questions on the spot, saving customers hours of extra work. And as an insurance professional, the agent can deliver personalized guidance that customers can trust.

The result is an efficient policy-buying process that leaves customers satisfied. And when it comes to buying auto insurance, there’s plenty of room – and incentive – to speed things up.

If a customer buys a car for the first time, they might spend hours researching carriers, comparing rates or waiting for an agent to help.

If they’re only upgrading their vehicle, they’ll have a short grace period to update their coverage after closing the deal. However, they may still have questions they’d prefer to ask a human agent, like whether they have the right deductible or how their car model impacts their premium.

With independent agents directly selling auto insurance, dealerships can streamline the car-buying process and keep customers happy.

Helping Customers Save Money

Right now, 58% of drivers believe they’re overpaying for auto insurance. That’s a bad sign during this period of economic uncertainty.

When money’s tight, people look for ways to cut back. And if your customers have an expensive auto insurance policy, they’ll likely skip buying your key replacement service or prepaid maintenance package.

With independent agent partnerships, you can help customers save on auto insurance. That’s because independent agents aren’t tied to a single carrier. Their extensive carrier access enables them to find the best coverage at the right price.

Another benefit? Independent agents can tailor the shopping process to customers’ financial needs using comparison software and rating tools – a huge advantage over online, do-it-yourself policy shopping. Agents can even add quoting software directly to your digital menu, giving customers accurate rates up front.

Selling auto insurance direct helps you deliver more value when your customers need it most. Save them money, and they’ll come back.

Selling More Cars

When you partner with independent agents, you get more than their insurance expertise. You can also tap into their customer base to drive new business.

For example, let’s say an agent is helping a potential homeowner shop for insurance policies. During their conversation, the agent asks about auto insurance – and the customer mentions they’re looking for a new vehicle.

This is a perfect opportunity for the agent to highlight your partnership; they’ll likely suggest looking at your dealership for car options. One advantage they’ll note? When it’s time to buy an insurance policy, the customer can work with a familiar face who understands their needs.

With independent agent partnerships, you can create a steady stream of referrals. The long-term benefit: more auto sales and more revenue.

Auto demand is through the roof right now. But when the market cools, dealerships will need innovative ways to attract new customers.

With direct auto insurance sales as an offering, you can create an all-in-one customer experience. This way, you’ll stand out from the competition no matter the market conditions.

Kristin Vidd is senior director of training, development, and sales at We Insure, a national insurance agency franchise organization.