Lamborghini Philadelphia is putting the “I” into in its “F&I” to make sure customers get what they want.
About a year ago the Devon, Pa., dealership began offering auto and homeowners insurance policies to its white-shoe clientele. The move is generating additional revenue for the dealership and fostering goodwill from customers.
When selling a new vehicle, Lamborghini Philadelphia offers to reevaluate customers’ auto and homeowners insurance policies to see whether they have adequate coverage.
The dealership then offers them a new policy that is either less expensive or has more comprehensive coverage, said Frank Tucci, general manager at Lamborghini Philadelphia.
“We give them a free look under the hood,” Tucci said. “It’s analyzing whether they have the proper coverage so they can protect their new asset. It’s giving them a value.”
For most customers, the new policy is not about saving a few bucks, but rather making sure they have the right coverage for their six-figure investments.
Run-of-the-mill insurance policies might not pay for high-end automaker replacement parts after an accident, Tucci said. “So having the right insurance provider is important.”
Tucci acknowledges that his insurance product does not make sense for every customer.
“If they have adequate coverage, we simply add the new vehicle to their existing policy,” he said.
Lamborghini Philadelphia offers the insurance product through an independent insurance agency owned by its parent, RDS Automotive Group.
Newtown Square, Pa.-based RDS owns several dealerships that sell premium brands, including Porsche, Maserati and McLaren, in Pennsylvania, Connecticut and California.
RDS spent more than a year launching the insurance business and developing partnerships with more than 20 carriers, including Hagerty, Allstate, Chubb, MetLife, The Hartford and Nationwide.
“We had to recruit a licensed insurance agent and buy a new DMS system to quote and bind policies,” Tucci said.
For Lamborghini Philadelphia, the insurance product is a new revenue stream. “Our customers pay on average nearly $10,000 in annual insurance premiums,” Tucci said. “That’s a roughly $1,400 commission on each sale.”
The dealership sold 67 new and used Lamborghinis last year and has sold more than 30 insurance policies so far.
Tucci said he expects to ramp up the insurance business this year and sell policies to about half the dealership’s customers, potentially generating nearly $500,000 in premiums.
“People don’t buy a car every year, but they renew their insurance every year,” he said. “So I’m getting a commission each year.”
Meanwhile, RDS Automotive will roll out the insurance service products across its eight stores by the end of 2022. The business could generate more than $770,000 in annual commissions.
Tucci said the insurance service is part of a “concierge experience” offered to the dealership’s well-heeled customers.
“We make COVID vaccine appointments for our customers; we recommend the best tailor, or accountants in town,” Tucci said. “The more one-stop shop we are, the more comfortable customers are with us.”