Why Younger Buyers Demand Insurance Options at the Dealership

Infographic on car insurance options with vehicle silhouette.

The Growing Influence of Insurance on Auto Sales

In the ever-evolving landscape of auto retail, affordability remains a major concern for many buyers. A recent survey by Polly, an embedded automotive insurance marketplace, suggests a new trend: younger car buyers now prioritize insurance options offered directly at the dealership. This shift reflects a broader desire for convenience and a holistic approach to car ownership.

Generational Preferences for On-Site Insurance

According to Polly’s 2025 Embedded Auto Insurance Study, 84% of millennials and Generation Z car buyers prefer the option to purchase insurance during the buying process at dealerships. This is significantly higher than the 66% average across all age groups, indicating a strong generational preference. The integration of insurance into the sales process not only aids in convenience but is also aligned with current digital preferences, offering a streamlined purchase experience for younger consumers.

Impact on Dealership Revenue and Sales Strategy

For automotive finance managers and dealership strategists, this data offers valuable insights. The study reveals that embedding insurance products can increase the likelihood of purchasing additional financial products (F&I), thereby driving up dealership revenues. When insurance was offered at the point of sale, 85% of buyers opted for F&I products, compared to only 53% when it was not addressed. Additionally, the potential to save on insurance motivates 69% of younger buyers to consider more expensive models or additional car accessories.

Relevance to Current Industry Trends

This trend aligns with a growing shift in consumer behavior where the total cost of ownership and convenience outweigh traditional preferences such as brand legacy. The study notes that insurance significance overtakes brand preference, with a notable 62% citing it as more important. This marks an industry-wide paradigm shift, prompting dealerships to reconsider their sales strategies to better align with customer priorities.

Future Predictions and Trends

Looking ahead, as digital tools become even more integral to the car buying experience, the integration of digital insurance options on-site is likely to grow. With 94% of respondents finding satisfaction in having access to a digital auto insurance app at the dealership, future trends are likely to lean heavily towards integrating tech solutions for insurance to enhance customer satisfaction and sales efficacy.

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