Ninety percent of auto dealers take a property and casualty quote once every two years. When asked why, Dealer Principals, Controllers, and Vice Presidents state that it’s because they’re looking to “keep their incumbent honest” and that they’re perpetually on the hunt for “better coverage.” However, in the end, for better or for worse, it often comes down to price when it’s time to make the final decision. This creates an extremely competitive property and casualty environment, which is highly beneficial to the dealer body. Because of the accessible nature of this competitive arena, Dealer Principals will spend eight to sixteen hours in an attempt to save ten percent on their annual premium. 

Now imagine if dealers treated their F&I providers the same way, and how much better their level of service would be! Instead, Dealer Principals often go five, 10, 15 or even 25 years between looking at F&I providers--a key area of their variable operations vertical that is responsible for driving millions of dollars a year in profit. By allocating just ninety minutes every two years to taking an F&I proposal from another F&I provider, the dealer body could create a similarly competitive environment in the F&I space.

Worst case scenario, by taking a proposal, dealers see their incumbent provider step up their level of engagement, gain insight into cutting-edge industry intel, and gain access to competitive administrative fee structures.

For more information, email Mario Bova at Zurich.