Gen Z and Millennials want embedded insurance options
The 2024 Embedded Car Insurance Study by Polly indicates that Millennials and Gen Z consumers prefer embedded insurance options at the car dealership and highlights their preference for convenience. According to respondents, 79% of Millennials and Gen Z think that auto insurance should be an integral part of the process when purchasing a vehicle and 81% would prefer to purchase their insurance while buying a car.
Polly conducted an online survey August 22 – 26, 2023 of over 1,000 American adults who had purchased a car within the last 12 months. The results show that 76% of Millennials and Gen Z think that buying auto insurance and their vehicle together would be easier and more convenient, compared to just 63% of all respondents who agreed.
“Our embedded auto insurance study reveals that Millennials and Gen Z aren’t just looking for vehicles; they’re seeking a holistic buying experience that includes insurance. The research is clear, consumer demand for integrated solutions is not a passing trend. It’s a new norm,” said chief marketing officer Mike Burgiss in a press release statement.
These generations, which are known to be tech-savvy and often referred to as “digital natives,” are more willing to embrace digital insurance channels. The study reports that 82% of respondents prefer to shop and buy insurance coverage using their cell phones, and about 65% would be willing to buy a policy through an embedded app at a dealership.
With these results, the Polly study emphasizes the significance of tech-driven solutions and innovations in insurance as younger generations are embracing, or even expecting, these solutions throughout their purchasing journey. Gen Z and Millennials have become more familiar with embedded products, as 43% have heard the term “embedded insurance,” versus the 27% of all respondents.
Polly reports that not only are these cohorts more comfortable with embedded solutions, but these consumers have also largely come to expect these kinds of insurance products as a means for increased convenience and efficiency. A reported 83% of Millennial and Gen Z customers bought embedded insurance with their recent car purchase.
The report suggests that offering embedded insurance options has the opportunity for increased brand loyalty and longevity; if a dealership offered an embedded insurance product, 72% would refer the dealership to others, 71% would return to that same dealership for maintenance, 71% would feel better about their buying experience and 68% would give a higher customer satisfaction rating.
Affordability is another critical area for opportunity, according to the study, as Millennials and Gen Z are very concerned with saving money. Nearly half responded that they settled for a different car than they wanted when shopping for vehicles, and 84% said that overall cost is the most significant factor to consider when purchasing a car. As 63% of car buyers think that the cost of insurance is the most important attribute to consider, the Polly report suggests that dealerships and carriers have an opportunity to provide innovative tools and holistic buying experiences that help customers save money through discounted insurance products and streamlined processes.
