Over the last few years, the automotive industry has been experiencing a rapid shift toward digital car buying processes. End-to-end online car sales and used car buying apps have been gaining traction among younger generations. And with recent inventory shortages and low showroom foot traffic, these are unpredictable times for dealerships.
One thing we know for sure moving forward is that digital retailing processes are here to stay. So, how can your dealership take advantage of easy and effective digital tools designed to boost revenue?
Consider offering customers dealership insurance coverage with the help of a digital insurance platform.
What is a Digital Insurance Platform?
Often for drivers, the process of securing auto insurance is entirely separate from the car buying experience. Many drivers simply add a new vehicle to their existing insurance policy or shop for a new policy on their own.
Dealership insurance coverage offered on a digital platform allows customers to obtain a quote and purchase coverage right from your dealership.
Easily direct customers to fill out a basic web form on their phone during the time of purchase, and they’ll receive a list of generated quotes from trusted brands. A licensed agent will then call the customer from your dealership and a policy can be bound within minutes.
Using a digital insurance platform helps secure sales for your dealership while providing a painless and financially beneficial experience for you and your customers.
Benefits of Offering Digital Dealership Insurance Coverage
While the benefits of offering digital insurance from your dealership are boundless, here are a few of the main advantages:
Secure More Sales
Customers with particularly tight budgets might rule out certain vehicles altogether based on their current insurance policy premiums. By offering these customers free quotes online at your dealership, you can help them identify ongoing monthly cost savings and get them into the car of their dreams.
Increased Revenue Opportunities
Drivers are more likely to buy aftermarket products when paired with insurance. For example, vehicles sold with a stolen vehicle recovery device not only add value to the customer through increased service but customers can take advantage of potentially lower insurance premiums for driving a vehicle equipped with an anti-theft device. These types of product bundles sell themselves and can serve as profit centers for your business.
Protect Your Dealership from Liability
Ensuring that customers have the appropriate coverage can protect your dealership from lawsuits and liability from title transfer and registration issues. Providing an easier way for customers to obtain insurance through digital dealership insurance coverage ultimately protects your customers and your business.
Increased Buyer Spending Power
Customers today are acutely aware of prices due to recent economic uncertainties. Helping customers find savings on their car insurance coverage frees up their budget to purchase a more expensive vehicle, higher trim level, or other F&I products. After finding a lower insurance rate, customers are more likely to spend more at your dealership. It’s a win-win.
Acquire Recurring Revenue
Many digital auto insurance platforms allow dealers to receive fixed referral payments per policy sold to a driver and some offer recurring income opportunities through licensing. Another opportunity for added revenue through digital dealership insurance coverage.
Improve Customer Experience
Customers currently spend an average of three hours in the dealership and part of this time is spent consulting with their current insurance provider. By generating fast quotes and securing coverage in your dealership, you can save customers time and money while improving the overall customer experience.
Create a One-Stop-Shopping Experience for Your Customers
As explained above, offering dealership insurance coverage adds value to your business in countless ways. But perhaps the best reason to consider proving digital auto insurance is so you can build out your arsenal of complementary products and services.
With the Elo + product range, you gain foundational consumer offerings like Elo GPS Stolen Vehicle Recovery and CarRx vehicle health monitoring paired with complementary 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. To learn more about Elo + Insurance and our other innovative products, connect with our Elo + specialists.