July 10, 2024
Today, we're excited to share some incredible insights from our freshly minted Q2 2024 Embedded Insurance Report. If you thought the auto insurance market was all pain and no gain, think again—there’s plenty of opportunity out there!
Key Takeaways:
The Embedded Insurance Revolution
Despite some past bumps in the road, the embedded insurance landscape for dealers continues to improve. With rising insurance costs, more consumers are on the hunt for better deals. Even Gen Z is getting in on the action, leading the charge in switching carriers. When consumers shop, they’re looking to save, creating a golden opportunity for dealers to find more budget during the car buying process.
Embedded Boosts Back-End Profits
Integrating insurance into your sales process can significantly boost your bottom line. Our analysis of nearly a million transactions shows that F&I gross profit per deal jumps by an impressive 20% on average when insurance is part of the package. That’s a serious win for any dealership looking to enhance profitability.
Improved VSC Penetration
The report also shines a spotlight on Vehicle Service Contract (VSC) penetration. Dealers who offer insurance quotes see a median increase of 21% in VSC penetration. This means more customers are opting for those valuable service contracts, driving even more revenue for savvy dealers.
Expert Insights
"Polly's Q2 2024 report underscores the critical role that embedded insurance plays in enhancing dealer profitability and providing consumers with valuable savings opportunities," says Mike Burgiss, our Chief Marketing Officer. "As the market continues to evolve, dealerships that integrate competitive insurance quotes into their sales process will be well-positioned for success."
Looking Ahead: Predictions for Q3 2024
The future looks bright! We expect the insurance market to continue its upward trajectory throughout 2024. Shopping activity is set to remain sky-high, with even the typically reserved Silent Generation and Baby Boomers now on the lookout for savings. Sophisticated insurance companies are ready to capture new business, enhancing the embedded insurance opportunity for everyone involved.
Ready to dive into the full report? Download our Q2 2024 Embedded Insurance Report and get all the details.
Got questions or need more info? Reach out to me at 802-316-3939 or bjastatt@polly.co. We’d love to hear from you.