A partner auto dealerships need
- Insurance expertise
After several challenging years, many issues plaguing the auto industry are starting to dissipate. There are more cars on the lot, manufacturing wait times have reduced and prices in both the new and used car markets are stabilizing. But when one challenge eases, another is often not far behind. This time is no exception. Consumers are feeling the ongoing effects of an uncertain economy, inflation and rising interest rates, which is creating hesitance around purchasing a vehicle, even if the vehicle they’ve been waiting for is now available.
So, what is an auto dealer to do? You can’t change the economy, but you can make car ownership easier by reducing pain points in the buying process.
Consider the challenges potential car buyers face just with insurance.
According to one recent report, consumers will pay 10% to 15% more for coverage in 2023 compared to 2022. The rising cost of insurance coupled with concerns about coverage adequacy due to the changing economy creates a significant worry for consumers.
In fact, a Harris Poll conducted on behalf of VIU by HUB surveying more than 1,600 Americans who have auto/homeowners insurance revealed nearly 60 percent of survey respondents were concerned about insurance coverage not being enough due to the changing economy. Furthermore, among those who have made a claim on their insurance policy in the past five years, 40 percent have experienced situations where their policy did not cover their claim as expected. These findings highlight the need for consumers to carefully evaluate their insurance options to make sure they have adequate coverage.
Apart from concerns about coverage adequacy, auto dealers should understand that customers also face other pain points related to auto insurance that could potentially impact their decision to purchase a new car, including:
- Complexity – Insurance policies can be complex, filled with technical jargon and intricate details that may be challenging for customers to understand. This complexity often leads to confusion and uncertainty around selecting the right coverage.
- Lack of transparency – Customers often find it difficult to obtain transparent information about insurance coverage – what is included and excluded in their policies, the level of deductibles, how premiums are calculated and more. This lack of transparency can make it challenging for customers to assess the value they are receiving from their insurance provider.
- Limited options – Many customers are unaware of their options when it comes to insurance providers, particularly if they have been with the same carrier for an extended period. They may also feel like it takes a lot of work to explore multiple options (e.g., separate websites/apps to get quotes). There are also limitations on websites that provide auto insurance options in a neutral way and offer advice on what consumers really need.
- Lack of personalization – Customers desire insurance coverage that meets their unique needs and circumstances. However, they often find that insurance policies are one-size-fits-all and do not offer the level of customization they seek.
Auto dealerships have an opportunity to solve many of these concerns for their customers. By partnering with a digital embedded insurance broker like VIU by HUB, dealerships can offer their customers a streamlined insurance experience that goes beyond simply purchasing a car.
Embedded insurance, seamlessly integrated within the dealership's systems, empowers customers to compare, shop and purchase personal auto insurance easily during the car buying process. This not only saves customers time and effort but also helps them find the best coverage at the most competitive prices. With VIU by HUB's platform, customers gain access to a wide range of insurance options, allowing them to make informed decisions based on their specific needs.
But it goes further than that. Through VIU by HUB's platform, customers gain access to expert advice, education and unbiased recommendations for their insurance needs throughout the policy lifecycle and beyond. They have a platform they can rely on, available online and via phone, to answer their questions and provide guidance when it comes to insurance coverage. This level of support builds trust and confidence, creating a lasting relationship between the customer and the dealership.
The advantages for auto dealerships are clear. By providing a solution that simplifies the insurance buying experience and offers ongoing support, dealerships can differentiate themselves in a competitive market. They become a trusted source for customers, helping them navigate the complexities of insurance and making sure they have the coverage they need at the right time.
Furthermore, embedded insurance opens new revenue streams for auto dealerships. By offering insurance options through VIU by HUB's platform, dealerships may be able to generate revenue, creating an additional source of income. This diversification of revenue helps dealerships thrive in an evolving industry.
As affordability issues persist for some consumers, dealerships that proactively address consumer challenges and provide solutions to pain points will stand out among the crowd. By partnering with VIU by HUB, dealerships can enhance the car buying experience and solidify their position as trusted advisors.