The post-Covid19 automotive insurance market and the industry shift to digital
Motor dealerships are becoming increasingly digital in response to the devastating impact that lockdown restrictions have had on the automotive retail sector. Many forward-thinking dealerships have introduced innovative buying options such as online purchase, home delivery and click-and-collect – and InsurTech is perfectly complementing this digital shift by disrupting the status quo in the driveaway insurance space (fixed-term, fixed-price policies that enable the buyer to leave the forecourt with their new vehicle without having to commit to a new annual policy, or adjust their existing one, on the spot).
The cumbersome and outdated traditional model for driveaway insurance cover, which has been monopolised by established insurance giants for decades, has frustrated dealers and buyers alike because of its complicated and time-consuming process that involves customers spending anywhere between 20 minutes to an hour in the underwriting process, with the dealer unable to focus on more profitable activity because they are required to wait for the policy to be approved and then print it off for the customer to sign.
As a result, dealerships nationwide are making the switch to a digital alternative that slashes policy wait times by more than 80%, giving drivers access to fully-comprehensive fixed-price driveaway insurance policies within 90 seconds, following a few taps on a mobile phone, using a dealer-specific URL.
While Covid19 still remains a threat, this dramatically minimises physical contact between the buyer and seller as all paperwork is eliminated, which also makes the process more environmentally-friendly. Importantly it also speeds up the purchase journey to enable more showroom footfall without the risk of overcrowding or creating unnecessarily long queueing wait times.
For the dealers, it means more efficient stock clearance times and greater profitability. For the buyers, it takes the stress out of searching for annual insurance on the spot, and provides the driver with near instant cover so that they can immediately leave the forecourt with their new car, while giving them the opportunity to thoroughly research the best annual policy to suit their needs.