March 28, 2024
We're thrilled to release our Quarterly Embedded Auto Insurance Report – data-driven insights on the embedded auto insurance opportunity for automotive dealers.
TLDR: The insurance market is improving in 2024, and dealerships with an insurance program see a significant uptick in back-end gross (10% or more).
Across 384,121 Vehicle Transactions, Customers Who Received Insurance Quotes Spent More in the F&I Office
Market Recovery on the Horizon:
After a tough couple of years, the embedded auto insurance market is poised for a recovery in 2024. Carriers are rapidly warming up to new business.
Embedded Auto Insurance Market Opportunity: Q1 2023 – Q1 2024*
The Insurance Advantage:
Dealerships that integrated an insurance program saw a significant uptick in back-end gross (10% or more), a testament to the power of offering comprehensive financial solutions to your customers. Dealerships offering insurance see notable increases in back-end gross. $636 more dealer profit when buyers switch and save on insurance.
Customer Engagement = Increased Profitability:
Engaging customers with insurance quotes has not only elevated their buying experience but has also substantially boosted back-end profits, even for those who opted not to purchase insurance immediately. Our report reveals $264 higher back-end gross when car buyers receive insurance quotes at the dealership.
Our Quarterly Embedded Auto Insurance Report is a quantitative showcase of the benefits of integrating insurance conversations within the dealership experience. The real uptick in back-end gross profit, to the tune of $264 merely from offering insurance quotes, highlights the promise of insurance in the dealership.
With the auto insurance market recovery in 2024, there's never been a better time for dealerships to embrace embedded insurance to meet customers' financial needs while significantly boosting the dealership's bottom line.
For a deeper dive into our findings and to uncover how your dealership can capitalize on this emerging trend, we invite you to access the full report.