TurboCoverage, billing itself as the nation’s first Web-based auto insurance service exclusively for auto dealerships, has launched an insurance platform that enables uninsured car-buyers to instantly secure coverage in the dealer showroom and drive away with their vehicle.
TurboCoverage significantly improves the existing insurance process in dealerships in which uninsured car-buyers typically wait an hour or more for off-site insurance agents to arrive and provide coverage, according to Jim Grim, president and CEO of TurboCoverage. About 3 million insurance consumers, or 20 percent of the car-buyers at the nation’s 22,000 franchised auto dealers, purchase insurance at a dealership each year.
At TurboCoverage dealerships, consumers can secure coverage in about 10 minutes, according to Grim. Using the TurboCoverage-installed workstation, consumers fill in a brief online form to obtain quotes and purchase coverage from participating carriers. Consumers can use self-help tools and information to evaluate
their insurance needs in a real-time, pressure-free environment, or they can talk to a live insurance agent in a TurboCoverage service center if they have questions.
“TurboCoverage is revolutionizing the insurance transaction for dealers by enhancing the customer experience, improving deal flow, and allowing sales representatives to be more productive and service-oriented,” Grim said. “For consumers, TurboCoverage eliminates one of the worst parts of the car-buying experience and gives them greater control of the process. For auto insurers, TurboCoverage
delivers the lowest customer acquisition costs for the non-standard market compared to any online or offline distribution channel. TurboCoverage is the perfect solution for all three parties, and we’re the first to offer it.”
Dealers, Insurers Already Participating
More than 25 dealerships in Northern California are currently working TurboCoverage. The first phase of a nationwide roll-out is scheduled for this spring.
“TurboCoverage was a breakthrough for us because it’s truly easy for consumers, gives them a choice of insurance options without any pressure, and simplifies the entire car-buying experience," said Steve Cornelius, general manager of Stevens Creek Toyota in San Jose,
Calif. "From the dealer perspective, TurboCoverage eliminates one key area where we have ceded control of the process. TurboCoverage is another value-added service offered to our consumers, and it is an indispensible tool for us.”
TurboCoverage insurance companies currently offering products include Infinity Insurance Co., Workmen’s Auto Insurance, and Interstate Insurance Company, all of which specialize in providing insurance products to the non-standard insurance market.
“TurboCoverage is a highly efficient way for insurance companies to offer coverage at the time of the vehicle sale," said Chris Williamson, vice president of Infinity Insurance Company. "TurboCoverage provides Infinity with an excellent opportunity to provide its premier products to a motivated
group of consumers who are ready to buy insurance.”
TurboCoverage Business Model
TurboCoverage generates revenue through insurance commissions and a policy initiation fee paid by consumers and shared with dealers. TurboCoverage installs its stand-alone, dedicated workstation to allow dealerships to
maintain an arms length from the insurance transaction. Most dealers are not licensed to sell insurance and cannot offer advice or be part of any portion of the insurance transaction. TurboCoverage is a licensed insurance agent.
TurboCoverage is initially focused on the non-standard, or uninsured market, which represents about $19 billion annually in premium. Each year, about $500 million in non-standard premium is written in U.S. auto dealerships.
Later in 2001, TurboCoverage plans to focus on the standard market, which represents more than $100 billion annually in premium and 24 million
transactions annually. TurboCoverage believes that the purchase of the vehicle is a key trigger event for insurance consumers because they are typically required to review their insurance needs at that time.
“The vehicle purchase is a time when all consumers need to review their insurance, and many people would like an easy, and convenient way to do so,” Grim said. “Working closely with dealers and insurers, TurboCoverage is
seeking to help consumers seamlessly complete the insurance transaction, while providing a wide variety of quality options at the same time.”
About TurboCoverage
TurboCoverage is based in Silicon Valley, and its investors include executives from the auto dealership, insurance, and technology industries.
For more information about TurboCoverage, call
1-888-263-3637 or visit www.turbocoverage.com.
