Cover Genius, an insurance software platform, is rolling out an integration with dealership software provider AutoMatrix to incorporate auto insurance offers into the finance and insurance process. It would allow dealers to introduce customers to a variety of insurance carriers inside their stores while skirting laws in certain states that bar dealers from acting as insurance agents.
Cover Genius’ insurance and warranty platform is the first to integrate directly into dealership management software, according to a Cover Genius executive. The platform will be released in phases, beginning at the end of the first quarter, to all 130 AutoMatrix dealers, Cover Genius said.
Offering auto insurance options at the point of sale prevents customers from having to ferry details, such as vehicle-specific data, between the dealership and an external agency, Cover Genius’ Austin Ledgerwood told Automotive News.
“The dealer is really thinking about, how do you create that all-encompassing experience?” he said. “First-time car buyers might not know who to call to get insurance. There’s definitely a market for people to figure out what they want to cover their car.”
Ledgerwood is vice president of strategic partnerships in the Americas for Cover Genius. He previously spent 11 years at Cox Automotive, most recently as head of client success at Flexdrive.
Cover Genius is the licensed agent in the transaction, Ledgerwood said, acting as the go-between through the DMS platform. That way, the dealer is not selling insurance — they’re simply presenting a quote without collecting premiums or earning conversion commission. Ledgerwood said Cover Genius provides dealers modest lead fees.
“It’s really just a point of conversation for the F&I manager,” he said. “We don’t want to get in the way of the financing conversation, the payment conversation or the warranty products.”
Dealerships that offer car insurance choices in-house may be able to offer options that decrease premiums for cash-strapped customers. Users of web-based software provider DealerPolicy, which offers in dealerships, say finding less expensive insurance policies for customers can help them sell more F&I products to those customers.
