(Image source: DealerPolicy homepage.)
DealerPolicy (Burlington, Vt.), an insurance marketplace for automotive retail, has announced a $110 million Series C investment round led by the Growth Equity business within Goldman Sachs Asset Management (New York) with participation from existing investors including 3L Capital (Los Angeles) and Stamford, Conn.-based Hudson Structured Capital Management Ltd. (doing its re/insurance business as HSCM Bermuda). The new investment will be used to accelerate the growth of the company’s next-generation finance and insurance (F&I) offerings for both dealers and car buyers, enabling automotive insurance to be seamlessly integrated online and at the point-of-sale. Goldman Sachs’ Paul Pate will join the company’s board of directors.
“DealerPolicy has successfully pioneered the assimilation of personal insurance into the automotive retail process, in a unified and compliant manner,” comments Paul Pate, a Vice President within the Growth Equity business within Goldman Sachs Asset Management. “We’re thrilled to support the DealerPolicy team as they continue to transform the purchase of cars and insurance.”
DealerPolicy says the funding will enable it to expand its operations to further develop and embed insurance throughout the entire car shopping and ownership experience. To expedite the development and roll-out of its insurance distribution and fulfillment solutions with its major insurance carrier partners, the company intends to triple its product and engineering teams over the next 12 months by hiring new talent. Additionally, the company says it will increase investments in strategic partnerships.
DealerPolicy Insurance says that, on average, it saves consumers who report savings $64 per month on automotive insurance. DealerPolicy Insurance, the brand’s agency, and its network of over 1,000 dealers and more than 40 leading insurance carriers, have written over $200 million in total premiums for car-buyers nationwide since establishing the company in 2016. Automotive dealerships in their network report on average 44 percent higher gross margins in their F&I departments because of increased customer budgets from their insurance savings.
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