In a market where affordability is increasingly becoming an issue for car buyers, dealers are finding a way to cut costs for their customers without altering their operations by helping them find competitive insurance policies.
Though car dealers aren't allowed to act as insurance agents for their customers, some are relying on DealerPolicy, a digital insurance platform that allows customers to compare quotes for car insurance while still in the dealership. The result helps customers save money, participating dealers say, and keeps F&I product sales from competing with insurance costs.
Through DealerPolicy's web-based software, dealerships can offer customers auto insurance from a selection of providers, such as Progressive, MMG Insurance, Ohio Mutual Insurance Group, Safeco Insurance and Union Mutual in Vermont. When a customer connects to a more affordable insurance policy, the dealership can sell more F&I products and help customers who struggle to pay their monthly vehicle costs.
John Crowley, general manager at AutoFair Ford in Manchester, N.H., says for customers with affordability issues, DealerPolicy can save a deal. When a monthly payment plan isn't working for a customer, the sales associate can turn to the insurance policy to cut costs.
"If I can save you $300 with your insurance payments, you can now afford to buy the car," Crowley said.
AutoFair Ford sells about 1,300 new vehicles and 1,500 used vehicles a year.
"Their technology is really simple," Crowley said. "It prompts the process with a handful of questions, [such as] have you had a speeding ticket? Based on the answers to those questions, it'll generate quotes."
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