Honda establishing a new insurance division opens up fresh Finance and Insurance prospects for dealers under its American umbrella.
Honda Motor Co. Launches Insurance Agency, Boosting Dealership Profits and Customer Retention
American Honda Motor Co. has taken a significant step forward in its digital transformation with the introduction of Honda Insurance Solutions, a new insurance agency offering coverage for autos, motorcycles, RVs, homes, and more.
The new agency, which operates in all 50 states as a licensed agency, will leverage the established brokerage platform VIU by HUB. This move is expected to provide customers with trusted, competitive insurance options directly through the Honda brand.
For dealerships, Honda Insurance Solutions presents an opportunity to boost F&I profits and enhance customer retention. By incorporating insurance offerings directly, dealers can streamline the insurance process during vehicle delivery, potentially increasing efficiency and F&I profitability.
The availability of insurance coverage that includes genuine Honda and Acura parts, coupled with integration with digital retail platforms, convinces customers to stay aligned with the brand for both their vehicle and insurance needs, enhancing loyalty and retention over time.
Dealers gain more control over the insurance experience, which can improve buyer satisfaction at delivery, an important metric in dealership performance. The integration of Honda Insurance Solutions into Honda’s digital sales and ownership platforms facilitates a smoother post-sale experience, fostering long-term customer retention by creating direct, ongoing touchpoints with buyers throughout their ownership lifecycle.
Honda's vision is to embed buying insurance into a digital purchase process, but it is not yet in existence. The rollout of this service will be done step-by-step, taking feedback from dealers to ensure a smooth transition.
The Acura ZDX is the first Honda Motor Co. Ltd. model available for online purchase in the U.S., and the insurance option will first appear in the Acura ZDX digital purchase platform. Some less-regulated states may be targeted initially to figure out the best way to offer insurance.
The Rick Case Automotive Group, which has Honda and Acura dealerships, as well as a Honda powersports franchise, believes they could benefit from increased brand retention if Honda Insurance Solutions is executed properly.
Honda Insurance Solutions fits into Honda’s broader strategy to create seamless digital retail and ownership journeys, aiming to create new revenue streams while strengthening customer relationships across the ownership lifecycle.
Insurance can be complicated, and the expansion of embedded insurance will be done with care, taking into account the unique needs and preferences of dealers. The potential benefits for both customers and dealers are significant, and Honda is committed to making this transition as smooth and beneficial as possible.
[1] Honda Press Release, "Honda Insurance Solutions Launches to Streamline Insurance Process during Vehicle Delivery," 2025 [4] Polly's Q1 2025 Embedded Auto Insurance Report [5] American Honda Motor Co. Website, "Honda Insurance Solutions," 2025
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