How Digital Auto Insurance Can Increase Revenue

 - Connected Dealer Services/The SNS Group – Image licensed by Adobe Stock

Connected Dealer Services/The SNS Group – Image licensed by Adobe Stock

From inventory shortages to low showroom foot traffic to the rapid digitalization of car sales, these are unpredictable times for auto dealerships. One thing we know for sure moving forward, is that digital retailing processes are here to stay.

While many digital retailing tools have been adopted by dealerships in recent years, one major opportunity for dealerships are digital auto insurance platforms. Platforms like this can enable your dealership to:

  • Secure more sales
  • Add aftermarket revenue opportunities
  • Protect your dealership from liability
  • Increase buyer spending power in your dealership
  • Recurring revenue opportunities
  • Improve your customer’s experience

Digital Auto Insurance

Currently for drivers, securing car insurance on a new vehicle can be a disjointed experience separated from the car buying process. The majority of car buyers in fact will try to get a hold of their current insurance provider to add a vehicle to their existing policy and aren’t aware this is the perfect time to shop for more competitive insurance coverage. Many customers who do shop for a new policy for their new vehicle do so on their own without assistance or recommendations from dealership employees – which means dealerships are missing out on referral income.

In this digital era customers expect a seamless buying process and by working with a digital auto insurance platform dealerships create the opportunity for a customer to easily get a quote and purchase auto insurance directly from their phone in the dealership.

Your dealership can direct customers to get a quote on a simple web form customers can access from their mobile phone that will gather their details and quickly generate auto insurance quotes from trusted brands for the vehicle they are considering purchasing. A licensed agent will then call the customer and a policy can be bound in a few minutes while they are still in the dealership. This helps secure the sale for your dealership while providing a painless and usually financially beneficial experience for you and your customers.

 - Photo Courtesy of Connected Dealer Services

Photo Courtesy of Connected Dealer Services

How Does Digital Auto Insurance Benefit A Dealership?

Aside from modernizing your dealership, there are many benefits including…

Secure More Sales

A customer with a particularly tight budget might decide they can’t purchase a particular vehicle at all based on insurance costs with their current provider. Finding the additional cost savings by giving them an easy way to access competitive insurance quotes from multiple insurers can help save the sale in a matter of minutes. Helping your customer identify an ongoing monthly cost savings for them by simply pointing them towards a free insurance quote and using that to get them into the car they want is possibly one of the easiest ways to provide an exceptional customer experience.

Add Revenue Opportunities During Sale

Drivers are more likely to buy aftermarket products when paired with insurance. For instance, selling a vehicle with a stolen vehicle recovery device adds revenue opportunity by adding value to the customer through the device and service AND customers can potentially lower their insurance premiums even further by having theft protection products. Many auto insurance companies offer special discounts for drivers who can show proof of having a stolen vehicle recovery system installed in their car. These types of products can naturally complement each other and serve as profit centers for your business.

Protect Your Dealership From Liability

Making sure that customers have appropriate coverage can protect your dealership from lawsuits and liability from title transfer and registration issues. It is essential to ensure drivers have appropriate coverage – and having an easier way for a customer to get insurance ultimately helps protect your business.

We know that all drivers must purchase car insurance, but instead of a hassle this can be leveraged as an opportunity.

 - Connected Dealer Services – Image licensed by Adobe Stock

Connected Dealer Services – Image licensed by Adobe Stock

Increase Buyer Spending Power

With today’s economic uncertainties, customers are particularly aware of prices. Finding savings on their car insurance coverage frees up budget to purchase a more expensive vehicle, higher trim level, or add F&I products – all of which buyers often do when they realize they are either saving money on insurance or insurance was not as expensive as they had initially thought.

Comparing multiple insurance companies at once in a few minutes increases the likelihood the customer will be able to find a better rate than if they just called up their current insurance provider to add a vehicle.

Being able to drive higher back-end gross at no cost to your dealership while saving your customer’s money on insurance is a win-win.

Get Recurring Revenue

Some digital auto insurance platforms allow dealers to receive fixed referral payments per policy sold to a driver, but a few offer recurring income opportunities through licensing.

Improve Customer Experience

Customers still spend nearly 3 hours on average in the dealership and part of this can include trying to add and remove vehicles from their current insurance provider. Having a way to generate a fast quote and have coverage bound quickly can speed up the insurance process, ensure there are no cost surprises for the driver, and save them money – And you get to take credit for providing this great experience.

How Does Digital Auto Insurance Complement Other Products?

Adding digital auto insurance can help increase your sales of other products and services creating a one-stop shopping experience for your customers. For example, with Elo+  you have the foundational consumer offerings of Elo GPS Stolen Vehicle Recovery and CarRx vehicle health monitoring paired with complimentary products like Elo+ Insurance, a digital auto insurance platform with quotes provided by the SNS Agency.  

Elo+ Insurance quickly generates an insurance quote for drivers to provide a smooth sales process and secure additional revenue for your dealership.

  • Direct customers to the quick app for competitive auto insurance quotes from over 30 companies that are sure to fit every customer’s insurance needs
  • Spot insurance available to help secure deals and allow your customer to purchase a vehicle
  • Insurance coverage designed to increase customer satisfaction and drive dealership ROI.
  • Referral fee paid for every policy sold
  • Opportunity for commissions (subject to licensing). Licensing support provided!
  • Convenient, efficient, and expedited process to help you deliver more cars

Having an easy digital auto insurance option as part of your sales process can have major benefits as we outlined above while still giving drivers plenty of options to choose from.

By working with a digital auto insurance platform you can provide an exceptional customer experience while making sure you don’t leave money on the table or jeopardize a deal