DealerPolicy, a Burlington-based insurance startup, has raised $110 million in Series C funding to lead the insurance market for automotive retail.
The funding round was led by the Growth Equity business within Goldman Sachs Asset Management, counting with participation from existing investors like 3L Capital and Hudson Structured Capital Management Ltd. The startup has now raised a total of $184 million in funding, which has allowed it to become a major player in its industry. Paul Pate, a Vice President in the Growth Equity business within Goldman Sachs Asset Management, referred to the firm’s participation by stating:
“DealerPolicy has successfully pioneered the assimilation of personal insurance into the automotive retail process, in a unified and compliant manner. We’re thrilled to support the DealerPolicy team as they continue to transform the purchase of cars and insurance.”
The funding will be used to expand the startup’s next generation of finance and insurance (F&I) offerings, expand its operations, expedite the development and roll-out of insurance distribution, and triple its engineering teams over the next year. The startup will also be paying special attention to establishing strategic partnerships.
According to the startup, DealerPolicy’s insurance ensures its customers save about $64 per month on automotive insurances, which has allowed it to grow its network to more than 1000 dealers and 40 leading insurance carriers. More than $200 million in total premiums have been written by the startup since its founding. Travis Fitzgerald, Co-Founder and CEO of DealerPolicy, referred to the startup’s mission by stating:
“We started the company with the vision of providing a more convenient, transparent, and connected car-buying experience. The funding comes at a time when we’re seeing mainstream adoption of automotive insurance into dealer sales and F&I processes driven by consumer desire for new dealership practices”
With car ownership in the United States being one of the main means of transportation, saving costs on car insurance has become a major concern for car owners. With platforms like the one developed by the insurance startup, it is becoming easier than ever for drivers to find the policy that best fits their needs, improving the car ownership experience.