
Why Insurance Options Matter for Younger Buyers
As the landscape of automotive retail evolves, younger buyers are redefining the parameters of their purchasing desires. Recent findings from Polly's 2025 Embedded Auto Insurance Study illustrate that the modern consumer, particularly millennials and Generation Z, is significantly inclined to prioritize insurance options as part of the car purchasing journey. With 84% of these younger buyers expressing a desire for in-dealership insurance, it is clear that affordability and convenience drive this emerging trend.
How Insurers Can Increase Sales and Satisfaction
The study revealed that if dealerships can streamline the car-buying process to include insurance, they can also increase their sales through F&I products. A striking 73% of millennials and Gen Z are open to purchasing F&I protection products if they know they can save money on insurance. Notably, 94% of respondents indicated that having a digital auto insurance app at their disposal during the purchase greatly enhances their satisfaction with the overall experience. This reflects a growing expectation for real-time access to relevant financial information and convenience, pushing dealerships to adapt.
Impact of Insurance on Total Cost of Ownership
It's no longer just about the car model or brand for younger consumers; insurance costs play a pivotal role in their purchasing decisions. In fact, 62% of surveyed shoppers rated insurance as more important than the brand name of the vehicle, showcasing a paradigm shift in car-buying behavior. As safety, ownership costs, and fuel efficiency take precedence, dealerships need to recognize the value younger buyers place on total cost ownership, inclusive of insurance considerations.
Driving Future Trends in Auto Retail
These insights suggest that for dealerships investing in the future of car sales, the integration of embedded insurance services is not just advantageous—it’s essential. Sales reports indicate that introducing insurance during the purchasing process results in an 18% increase in overall revenue for F&I products. This pivotal finding underscores an urgent need for dealerships to harness these trends to enhance customer experience and boost bottom lines.
The Importance of Adapting to Consumer Expectations
As car buying evolves, the introduction of embedded insurance options offers an opportunity for dealerships to align their business practices with the preferences of the new generation of car buyers. The success of this strategy lies in understanding consumer motivations and creating value through seamless integration of insurance at the point of sale. The evidence suggests potential for sustained profitability through innovative approaches that cater to contemporary expectations. In a rapidly changing marketplace, embracing insurance options may well be the differentiator that leads to capturing a larger share of this demographic.
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