How does auto insurance fit into the modern car buying journey?

As we near NADA and the close of the first quarter of 2022, plenty of unknowns still remain. While lower inventories and high consumer demand fueled by COVID have driven dealer profits to record levels, I’m sure you recognize that today’s high margins aren’t likely to last forever. Now is the time to consider new revenue streams and opportunities that will bring additional margins to your business.

One such opportunity lies in automotive insurance. If an auto insurance solution is something you’re considering this year, I’d like to offer a few thought starters:

• What level of commitment feels right to you? And does the solution you’re considering offer multiple levels to meet you where you’re at? A good solution should offer not only licensed, but also an introductory level for dealers who are looking to benefit from referral payments and increased back-end gross.
• Does the solution offer integrations at every point along the customer journey? In an ideal scenario, customers are offered the opportunity to shop their policy from their online research phase all the way through to after they’ve returned home with their new car. With the right integrations into digital retailing, F&I menu, CRM, and DMS software, this can be completely seamless for both the customer and dealer.
• What support systems are in place to help you be successful? To maximize your returns, whether you’re earning referral payments or your agency is earning insurance commissions, you’ll need a solution that offers you and your team white glove service, consistent check-ins, and resources and training for your team. There’s no sense in implementing a solution without setting goals and having the proper assistance in achieving them.

But most importantly: does the company you’re considering have its DNA rooted within the automotive industry? Is everything they do centered around providing a top rate customer experience — not only when customers are in the dealership, but at every point of the retailing experience? 

If you’d like to talk through these considerations or you’re interested in learning more about digital auto insurance in general, please visit the Polly booth at NADA in booth 7009N.  

This will be a fantastic year of opportunity for dealers, and I look forward to seeing you at NADA.

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