Embedded auto insurance for OEM loyalty

As auto insurance rates begin to level off going into 2026 after several years of steep increases, car buyers are weighing affordability against protection. For auto OEMs, the next competitive edge isn’t just a smoother purchase, it’s an ownership experience that anticipates needs and removes friction. Embedding an omnichannel insurance experience for car buyers at key touchpoints can strengthen brand trust, protect total cost of ownership and keep customers in your ecosystem longer.

Why 2026 changes the OEM — insurance equation

The market is softening but not resetting, and 2026 brings a clearer view of how auto and specialty vehicle premiums are expected to shift. Auto rate growth is projected to ease to under 10%, while factors like ADAS and EV repair complexity, medical inflation and higher litigation awards continue to shape pricing. Specialty vehicles — including RVs, motorcycles and watercraft — are seeing modest single-digit increases driven by parts, scarcity and climate exposure. These trends, along with the share of drivers who remain uninsured, illustrate why insurance affordability and protection are still central to the ownership experience.

With this landscape in mind, the question becomes where OEMs can deliver the most value — and how embedded insurance can elevate key moments across the ownership experience.

What embedded auto insurance looks like today

Even as premium growth slows, many drivers don’t feel relief. Years of sharp increases — driven by rising repair costs, ADAS and EV technology, medical inflation and higher litigation awards — have shaped a persistent sense that insurance is expensive, confusing and often unfair. This perception influences how consumers engage with brands, what they expect during high-stakes financial decisions and where they look for clarity.

Across the market, several themes are shaping driver behavior:

• Affordability stress — Many drivers still feel squeezed by years of rising insurance costs, with some delaying claims or raising deductibles to manage expenses.

• Confusion and mistrust — A large share of consumers say they don’t fully understand their coverage, which erodes trust and makes rate changes feel arbitrary.

• Reactive behavior — Some drivers reduce coverage or even risk going uninsured, while others shop aggressively for savings.

• Untapped opportunities — Despite widespread dissatisfaction, many consumers aren’t proactively searching for better options — leaving room for trusted brands to step in.

These pressures create meaningful opportunities for OEMs. When insurance information and guidance are introduced at helpful moments, it reduces confusion, supports affordability and strengthens confidence in the ownership experience.

Design choices shaped by today’s consumer expectations

Consumer expectations around protection are shifting quickly, and embedded insurance works best when it aligns with the way people want to shop, share information and receive support. Customers are embracing seamless digital experiences—moving easily between apps, devices and in-person support — especially for complex decisions like insurance.

Many consumers are also more willing to buy insurance from brands they already trust. A private-label experience allows OEMs to offer protection as a natural extension of your trusted brand, reinforced by broad market access and strong advisory support. When customers can get guidance at the right time from a knowledgeable partner, confidence increases.

How VIU by HUB’s Brokerage-as-a-Service powers OEM programs

A Brokerage-as-a-Service (BraaS) model gives automakers a turnkey way to deliver insurance within their digital ecosystem without the complexity or risk of operating as an insurance company. VIU by HUB brings the carrier access, technology and human expertise to make that possible, including:

• Digital quoting — Fast, carrier-neutral quotes across personal lines (auto, home, renters, umbrella) with expertise from US-based licensed advisors.

• Market access at scale — A broad and flexible carrier network that adapts as appetites change, helping OEMs maintain affordability across markets.

• Loyalty and retention programs — Renewal outreach, cross-policy bundling and co-branded lifecycle communications that keep customers engaged and protected.

• Private-label experiences — Flexible interfaces that integrate seamlessly into OEM apps or portals while meeting strict compliance standards.

By combining these capabilities, OEMs can turn a traditional insurance transaction into an integrated service that supports customer retention, protects brand equity and introduces recurring revenue potential.

There is also meaningful opportunity in cross-sell and bundling. When customers secure auto coverage through an OEM-embedded experience, they are more likely to explore additional policies — such as homeowners, renters or umbrella — which can increase lifetime value, strengthen renewal rates and deepen the long-term customer relationship.

Measuring success and scaling confidently

The strongest programs launch with focus and scale fast. OEMs launching a VIU by HUB embedded insurance partnership typically measure success across five dimensions: lead rates, bind rates, auto policy cost, how many carriers are quoting and retention.

Every partnership should also include a clear data-governance framework from day one. Explicit consent, limited data sharing and secure rights management ensure regulatory compliance while preserving customer trust. When combined with VIU by HUB’s carrier network and advisory support, these guardrails allow OEMs to innovate confidently and scale sustainably.

Getting started

In 2026, the convergence of digital ecosystems and customer expectations makes embedded insurance more than just a convenience. It becomes an important differentiator. OEMs that design for trust, transparency and human connection will not only meet regulatory and operational demands but also build enduring loyalty.

If you’re exploring embedded auto insurance, VIU by HUB can help co-design the experience, integrate with your technology stack and deliver carrier access, advisors and retention programs from day one.

What to look for in an embedded insurance partner

Prioritize partners with automotive expertise and carrier reach

Seek insurance partners with proven experience in the automotive ecosystem and deep carrier relationships — both nationally and regionally. This ensures your customers have access to a full range of coverage options and that your brand can adapt quickly to changing market, regulatory and economic conditions.

Align insurance with the ownership experience

The most effective partners identify where insurance naturally fits within your customer journey — from presale to next purchase — helping you extend brand value, improve satisfaction and foster loyalty at every touchpoint.

Ensure seamless brand and digital integration

From digital quoting within your online experience to personalized advisory support post-sale, the right partner integrates insurance in a way that feels effortless for your customers, enhances your brand experience and minimizes operational lift for your teams.