When done right, insurance outsourcing can help your company turn a profit, gain more loan approvals, reduce operating costs, and improve business focus.
It’s normal to feel skeptical about insurance outsourcing, especially when it pertains to financial management. Choosing to work with a finance and insurance manager is a big decision, but it can help make an enormous impact on your company in the long run. This is especially true when purchasing a new vehicle or property. F&I managers help customers finance major assets by working with lending agencies to find the best offer. But Inadequate F&I support can create an exhausting list of issues including more costly expenses, frequent budget adjustments, and a more delicate bottom line.
In this blog, you’ll learn how to avoid those problems with proper F&I assistance.
How to Partner With the Right F&I Manager
Partnering with an insurance service provider is a critical decision to make. Several factors need to be considered, but when in doubt it helps to proceed with CARE:
- C (Costs)
- A (Ability)
- R (Reliability)
- E (Endurance)
We’ve broken down everything you need to know about this comprehensive decision-making approach:
Obviously, money is going to be a major factor in your decision. When comparing outsourcing companies, you need to be willing to look past the initial sticker price. Find the best bang for your buck and do everything you can so you don’t get stuck with a company that offers an unjust commission structure. Insurance agencies are going to try to sell you on percentage earnings, and since your overall goal is to acquire the greatest possible net income, you’ll want to partner with a team that charges a higher commission rate. Low-commission providers may offer a small service price upfront, but they’ll end up acquiring more money from you long-term. So would you rather earn 80% of $1,000 ($800) or 50% of $1400 ($700) instead?
The best F&I professionals are competent in many different verticals. Before signing any service agreement, thoroughly research each company that piques your interest. Review their websites, read any blogs or articles, and check out customer reviews. You’ll want to work with a one-stop-shop that delivers cost-effective solutions at a high service level.
When performing research on F&I companies, dig up as much information as possible and make sure to prepare the right questions. These are just some of the things you should be seeking answers for:
- What products and services are provided?
- What type of paperwork is handled?
- How do employees prioritize applications?
- What type of relationships do you have with lenders?
- What kind of funding ratios are offered?
- Are there any services you don’t deliver?
- Will you have employees available during weekends?
When it comes to F&I support, trust is everything. You should be comfortable taking any financial management advice from your partner. Perform extra research to determine how reliable each insurance company is. You’ll want to work with an F&I professional who has a positive and long-lasting reputation. See how long each company has been in business and speak to some of their dealers. This can tell you a lot about how they treat customers. Be sure to steer clear of smaller outsourcing providers, because chances are they only work with small dealers and handle a niche set of responsibilities.
F&I services are time-consuming procedures that occur any time you need to make a major purchase. Whether you’re buying a new vehicle, equipment, or a vacant space for a new office, you’ll need to prepare for a long, thorough evaluation process. Make sure to partner with a company that can align its strategy with any changes in your business structure. The best partners are those that want to be there long-term and grow alongside you. Choose an F&I partner that provides innovations, annual benchmarks, and compliance support.
F&I Solutions You Can Trust
The experts at Finance Solution will do whatever it takes to help you prosper. Our team takes the CARE approach very seriously. If you want to take advantage of an exceptional warranty but don’t have an in-house program, we’ll be there to help you get the support that you deserve. Our F&I department works around the clock to help you whenever you need it most.
The application process is simple and efficient, but we want to make sure you understand how it works before you close any deals. Set up a free consultation with our team to learn more about our peace of mind.