Polly says dealership F&I gross rose 22% when buyers got insurance quotes

By AI, Created 10:47 AM UTC, May 20, 2026, /AGP/ – Polly’s Q1 2026 report says embedded auto insurance is gaining traction in dealerships as national monthly quotes fell to $168 and buyers faced less friction getting coverage. The company says the trend is improving affordability for car shoppers while lifting finance-and-insurance profit for dealers.

Why it matters: - Embedded insurance is emerging as a bigger part of the car-buying process, with direct impact on what customers pay and what dealers earn. - Polly says dealerships that offer insurance quotes during the sale can improve customer affordability and increase finance-and-insurance gross at the same time. - The national drop in quoted premiums suggests a more stable insurance market for car buyers.

What happened: - Polly released its Q1 2026 Quarterly Embedded Auto Insurance Report on April 29, 2026. - The report says the embedded insurance opportunity for dealers reached its highest level on record. - Dealerships that introduced insurance quotes during the purchase process saw 22% higher F&I gross, or $343 more per transaction. - Deals where customers ultimately bought insurance produced 35% higher F&I gross, or $564 more per deal.

The details: - The report says stronger insurance company appetite, more rate availability, and greater dealer adoption are driving the shift. - Insurance market friction continued to decline, according to the report. - The share of buyers struggling to obtain insurance fell from 15% in early 2024 to 2% in Q1 2026. - Median monthly insurance quotes declined to $168 nationally, down from a peak of $202 in Q4 2024. - Among Polly’s top-performing dealership partners, F&I lift ranged from 8% to 47%. - Several rooftops saw more than 25% improvement when insurance quotes were added during the transaction. - The report says consistent insurance engagement leads to stronger and more predictable financial outcomes. - Nevada ($273), New York ($262) and Georgia ($258) remained above the national median and showed ongoing affordability pressure. - The full report is available at the company’s report page.

Between the lines: - Polly is framing insurance as a retail tool, not just a compliance requirement. - Lower friction and lower premiums make insurance easier to present earlier in the deal, which can help dealers close more transactions. - Regional price gaps show that national stabilization does not erase local affordability problems.

What’s next: - Polly expects insurance availability to keep improving through 2026 as carriers expand underwriting appetite. - The company expects insurance to remain a major affordability issue for consumers and a profit lever for dealers. - The report points to continued dealer adoption if the current trend in quotes and customer acceptance holds.

The bottom line: - Polly’s latest data suggests insurance is becoming a more routine part of dealership sales, with lower consumer friction and higher dealer profit potential.