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Hey everyone,
We missed the mark.
Last week, we published a piece on Niello’s CRM switch. The headline was strong, but the article didn’t deliver the substance our readers expect. Your feedback was clear — and warranted.
We’ve reviewed the feedback and adjusted our process. Future stories will be sharper, deeper, and more grounded.
(We’re also reaching out to Niello and will request their cooperation on a part 2!)
Thanks to this community for keeping us honest.
1% better everyday 🙏
— CDG
First time reading the CDG Newsletter?
Welcome to the Market Pulse—your no-fluff cheatsheet to auto retail, built to help dealers price right, stock smart, and stay ahead.
Auto insurance premiums are topping $4K in NY/MD: That’s 50%+ above the national average.
The average cost to insure is diverging based on model type: Compact SUVs like the CX-5 and CR-V average under $165/month, while trucks and performance cars can cost over $250.
And dealers are adjusting how they sell cars: Some are calling insurance agents mid-deal, flagging VINs with $300–$400/month quotes, and switching vehicles when insurance pushes buyers over budget.
(Source: CDG analysis of Insurify Data)
In June, average annual auto insurance premiums in the most expensive states, according to Insurify, were as follows—
New York: $4,128
Maryland: $4,018
Florida: $3,725
Nevada: $3,610
Delaware: $3,544
That’s well above the national average of $2,500–$2,700, and adds over $330/month, often pushing the total monthly cost beyond what buyers expected, even if the car payment alone seemed manageable.
CDG analysis via Joe Cecala
Meanwhile, North Carolina, Ohio, Indiana, Wisconsin, and Idaho are all holding under $2,000/year, or about $150/month, which gives dealers more room to structure deals on newer, higher-trim, or certified models without exceeding the buyer’s budget.
WHY THIS MATTERS:
Insurance costs are rising, just like everything else, but not evenly.
And while dealers can’t control what insurance costs in their state, they can control how well they know which brands are cheaper to insure, and which models within those brands keep total cost in line with their market’s buyers. (More on that next).
Insurance costs are staying low for compact SUVs—and rising fast for trucks and performance cars.
Across the board, CarEdge data shows that compact SUVs and crossovers are among the cheapest vehicles to insure.
The Mazda CX-5, Honda CR-V, and Hyundai Kona all average under $1,950/year in insurance premiums.
Other low-cost models include the Subaru Outback, Subaru Crosstrek, Hyundai Tucson, Chrysler Voyager, Jeep Wrangler, and Kia Niro. Most of these average below $165/month in insurance costs based on national data, depending on the driver.
But at the other end of the scale…
The GMC Hummer EV, Ford F-450, Chevy Corvette Z06, and Nissan GT-R all cost more than $3,000/year to insure. That’s over $250/month, which can push total monthly cost beyond what many buyers are willing, or able, to pay, especially in high-insurance states.
WHY IT MATTERS:
The dealer group with a handle on which models cost $150/month to insure vs. $300 is more likely to get buyers into a car that fits their full budget, without making it feel like insurance was left out just to close the deal.
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High insurance premiums aren’t killing every deal.
But they are showing up earlier, and for dealers choosing to ignore that, deals can blow up fast.
Take Sames Auto Group, the oldest dealership in Texas, as an example.
COO Daryll Gremillion said that in one case, a husband and wife were planning to surprise their daughter with a new car.
They negotiated the price, agreed to close, and shared the news with her, only to find out later that adding the VIN would raise their premium by $3,000 a year.
Even worse, the daughter was already insured, which means the spike came from the VIN alone.
And while these aren’t common scenarios, Gremillion said they serve as a reminder to build a store that runs on compassion and problem-solving.
That means being ready for the insurance talk, regardless of when it comes up:
Like calling insurance agents mid-sale with the VIN, trim, and driver details to get real quotes on monthly premiums before showing the buyer any payment numbers.
That prevents quoting a $500/month car note that later jumps to $800/month once insurance hits.
Or keeping an internal list of models that consistently trigger high premiums, especially for younger buyers.
Because while Grand Wagoneer quotes come in high, even for clean drivers, CR-Vs often land around $160/month.
And referring buyers to a sister store when insurance makes the monthly cost too high.
That way, the buyer stays in the group, and the team still gets to close the deal without forcing a bad fit.
Example: If a new Nissan pushes the payment over budget, the team sends the buyer to a used SUV at another Sames store for a better fit.
Gremillion’s argument: In every market, some buyers can absorb the insurance hit. But many can’t. That’s why his team has a strategy for every scenario, so the fundamentals (putting buyers in the right car, being upfront about the costs, and handling concerns with transparency) can stay the same.
Buyers adjust. Always have. Always will.
Prices go up, demand cools, but give it time, and the new normal becomes…just normal.
But here’s the catch…
Even in a high-cost world, buyers will spend. Just not with a dealer who knows less about insurance costs than they do.
Because monthly costs are under more scrutiny than ever, and when a dealership understands what drives premiums (by trim, by region, by buyer) it’s easier for the customer to say yes there, instead of walking down the street.
Missed yesterday’s episode of Daily Dealer Live?
Presented by:
Classic Cadillac on Hospitality in Service Lane, Benzel-Busch on Luxury Fixed
Featured guests:
Chuck Turck, Fixed Ops Director at Classic Cadillac and Subaru
David Cerqueira, Service Director at Benzel-Busch Motor Car
