Why Offering an Insurance Quote in F&I Protects Dealer Profits

When you think about the risks associated with running a car dealership, the first few things that may come to mind are theft or damage to your inventory. But there is a much broader range of potential risks that can have serious consequences for your business.

Nothing should get in the way of F&I managers from getting their opportunity to sell their menu of products…but there is one thing that can - insurance agents.

Cybercrimes have been rising in recent years and with the increased reliance on fully digital transactions in dealerships, it’s important to have a tactical plan in place to avoid major breaches. But beyond that, a dealer must have proper insurance against such attacks.

More dealerships are looking for new ways to add profit in 2023 and one stream of income that has become hot is having an auto insurance agency in-house.

When your dealership has a customer’s car åΩin for service, you are Ωnow responsible for one of their most important possessions. Anything that happens to the car, whether it’s the fault of the technician or something completely out of their control, it’s critical to have the insurance coverage to handle a damage claim or risk a lawsuit. 

As a new car franchise dealer or an independent car dealer, there are certain best practices that you need to follow to ensure the success and sustainability of your business. One of these best practices is to shop your commercial insurance at least every two years. This is important because the insurance industry is constantly changing, and you need to ensure that you are getting the best coverage at the best price. Plus the last thing you need is any surprises when and if you ever have to file a claim.

Dealerships, new and used, are open to different levels of risk and it’s important to understand what kinds of coverages are available and why they are needed. And since every dealership has a lot full of cars, understanding the importance of Dealer Open Lot Insurance Coverage is a must.

Commercial insurance is not often the first thing the owner of a dealership thinks of when getting ready to open. Sourcing inventory, hiring staff for sales, finance, and back office, and building out a good marketing campaign all seem to come first but the reality is that without quality insurance for the dealership itself, everything else can be put at risk immediately.

Customers may not know how much they can save on insurance premiums if they don’t have access to the right resources.

When a dealer sells a car, they have to report that sale to the DMV and, in many states, (according to a New York dealer friend of mine), the dealer has only four days to let the state know.

Bear is coming because bear is always coming, and we all know it. Historical evidence shows us that market adjustments are always just one step off the unsuspecting cliff.

In case you haven’t heard, insurance companies are placing their agencies inside dealerships across the country and within the nucleus of those dealerships an awesome collision of industries is occurring.