Every corner of the news seems saturated with reports of surging auto insurance rates sweeping the nation. Rates have increased an average of 17% in the US with states like Nevada, Colorado, and Florida, that have been particularly hard hit, witnessing rate surges over 50% in the last year alone. Adding salt to the wound, several carriers are refusing new accounts in certain regions altogether while others demand hefty down payments—often ranging from 50-100% of the total premium. Despite these aggressive measures, insurance companies are still grappling with revenue losses, leading many experts to believe that insurance costs have yet to peak. (For a deeper dive into the reasons behind these spikes, check out our previous blog post, “Auto Insurance Rates Skyrocket in the US: What’s Driving the Increase.”)
The repercussions of these rate hikes resonate with many, but auto dealers, particularly those offering insurance during the sales process, feel the most significant strain. As escalating auto insurance costs get factored into a vehicle's overall price, consumers inevitably reevaluate the total cost of owning a car. This reassessment often leads to them reconsidering what they’re willing to spend, usually to the detriment of the car deal.
So why would dealerships highlight the burden of insurance during the car buying process? After all, they don't emphasize fuel costs or parking expenses. Conversations about car insurance simply do not belong in the car buying process.
Enter Gather. We've developed a system that eliminates the insurance conversation for dealers altogether when it comes to customers with existing car insurance. With Gather, dealers can simply ask their car buying customer if they’d like to add the new vehicle being purchased to their existing auto policy. If the answer is yes, Gather seamlessly updates the buyer's existing auto insurance to include their new purchase and returns the proof of insurance needed for the dealer to deliver the vehicle. We ensure the focus remains squarely on the car buying experience, not the external insurance costs.
Our streamlined technology integrates with top DMS providers—DealerTrack, Tekion, Reynolds & Reynolds, and CDK—finalizing the insurance verification in a mere 90 seconds. This efficiency means quicker car deliveries all while protecting dealers from uninsured losses.
In the current climate, where high insurance rates loom large over consumers' decisions, auto dealers are in dire need of forward-thinking solutions. Gather offers just that. By seamlessly adding the new vehicle purchase to the existing auto insurance policy, we ensure that the spotlight remains on the car buying experience rather than external insurance concerns.