Using Insurance To Negotiate Better Car Deals

How to prevent expensive auto insurance from crashing your car deals

  • For every $20.00 a month the customer saves in insurance, they gain an additional $1,000.00 in purchasing power.
  • Expensive insurance can often cause a customer to excessively haggle their car payment or make the customer walk out without purchasing a car – both hurt the dealership’s profitability.
  • Offering Fetch to all customers (versus calling a local agent) will save many customers money on insurance because Fetch shops multiple carriers’ internet prices.
  • Fetch offers direct-to-consumer quotes from insurance companies that want to compete on price.
  • When a customer saves on insurance, the customer may be able to purchase a more expensive vehicle or have more money to make his or her monthly car payment.

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The Problem – Pricey Insurance:

Expensive insurance hurts the customer’s ability to buy a car. If the customer can no longer afford the monthly car payments due to the high cost of insurance, the customer may miss out on the car he or she wanted — and the salesperson loses his or her commission.

When a customer walks onto the car lot, he or she typically has a maximum budget set aside for the car payment and the car insurance. The customer knows that the higher the insurance payment, the less the customer needs the car payment to be. Sticking close to this number when negotiating the price of a vehicle is essential to getting the deal closed for the customer and the salesperson. Unfortunately, if the insurance is expensive, the customer typically has no room in his or her budget to buy any back-end products — and often the cost of the insurance forces the customer to cancel the deal entirely.

The Solution – Fetch:

Fetch provides the ultimate platform for saving more in gross profit for the salesperson — and for saving car deals all together. Fetch offers customers multiple direct-to-consumer quotes and allows them to purchase a selected policy online in minutes. Since all insurance companies price customers differently, shopping multiple carriers that like to compete based on price could mean big insurance savings for your customers.

An agent’s commission typically costs customers an additional $40.00 – $100.00 a month. That extra money could be the determining factor in purchasing a new vehicle AT ALL or it can be used as “found money” for purchasing extended warranties, package upgrades, gap insurance, etc.

Fetch takes the money that would have gone to a local agent and puts it back into gross profit for the salesperson and dealership.

Let’s look at an example:

Jim goes to the dealership with a monthly car allowance budgeted at $550.00. Jim is determined to make sure his car payment plus his insurance payment do not exceed $550.00 per month. Jim finally finds the perfect car, and he and the salesperson settle on a vehicle price of $19,900.00. The dealership gets Jim approved for financing of 6.0% for 60 months, putting Jim at a monthly payment of $384.72. That’s over $165.00 under his budget.

Jim now calls his local insurance agent to add his new vehicle to his policy. Unfortunately, the insurance agent tells Jim his monthly insurance payment on the new vehicle will be $209.00. This puts Jim at a total monthly car budget of $593.72 — almost $44.00 over his original budget of $550.00.

At this point, Jim does what every customer in this situation will do. Jim throws a hissy fit and demands the dealership to come down on its price. If not, Jim threatens to walk away from the deal.

Now think about this — Jim is going to walk away from his car deal because his INSURANCE is too high. Why is that the dealership’s fault? But nonetheless, this happens hundreds of times per day in dealerships across the United States.

The dealership runs the numbers and realizes that, in order to lower Jim’s payment by the $44.00 a month he needs to stay within his budget, the dealership will have to lower the price of the car from $19,900.00 to $17,650.00 — costing the dealership $2,250.00 in profit.

Notice the insurance agent is not asked to lower their price, but the dealership is ALWAYS expected to cave on their price! In Jim’s case, the dealership is going to have to give away $2,250.00 on the price of the car because Jim has expensive insurance.

Now the dealership has lost a gross profit of over $2,000.00 and isn’t able to make up for it with a gap insurance policy or extended service warranty — all because Jim’s insurance quote was too high.

Luckily the dealership has already registered for Fetch and tells Jim to give it a try –Why Not? It’s FREE! Jim enters in his information into the Fetch platform and receives 4 quotes from national insurance carriers in a couple of minutes. These quotes for Jim range from $136.00 – $166.00. Jim selects the policy for $136.00 a month and follows a few more steps to complete his purchase.

Because of Fetch, Jim’s car payment and insurance payment total $520.72 per month — $30.00 below his budget! Jim is now going to have money to afford the car AND the extended service contract offered from the dealership! In other words, the dealer did NOT have to lower its price by $2,250.00. The dealership made the sale and also sold an extended service contract!



  • Fetch excludes agent commissions from the cost of insurance policies and shops across standard and non-standard carriers to save customers money.
  • Because Fetch offers standard and non-standard insurance carriers, even customers with bad credit, no previous insurance, or bad driving records can find a policy on Fetch.
  • Fetch can provide “found money” for your car deals to purchase warranty plans or other dealership offers.
  • For every $20.00 a customer saves in insurance, they gain $1,000.00 in purchasing power.
  • At the end of the day, where else can a salesperson spend 2 minutes to find the customer more money in his or her monthly budget?