Burlington-based DealerPolicy, the leading insurance marketplace for automotive retail announced its $110m fundraising led by Goldman Sachs Asset Management with participation from existing investors including 3L Capital and Hudson Structured Capital Management.
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,” said Paul Pate, a Vice President in 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.”
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DealerPolicy will expand its operations to further develop and embed modern day 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 will increase investments in strategic partnerships.
On average, DealerPolicy Insurance saves consumers who report savings $64 per month on automotive insurance. DealerPolicy Insurance, the brand’s award-winning agency, and its network of over 1,000 dealers and more than 40 leading insurance carriers, have written over $200m 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.
Source: Vermont Biz
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