MotoRefi announces auto loan refinancing / insurance consolidation
The main goal of the insurance industry is to convince customers to consolidate their policies by putting all of their coverage in the hands of a single insurer. Now MotoRefi shakes up this long-standing practice by offering a new option: combining insurance and auto loan refinancing.
The Washington DC-based startup announced the move on Monday at the 20/20 Fintech Money conference in Las Vegas. When a consumer visits MotoRefi’s website to search for a better deal on their car loan, they also have the option of being put in contact with an insurance company who may also offer lower coverage costs.
“Tens of thousands of people come to our site every month and come with the intention of refinancing their cars and saving money, we are just giving them another chance to save money. A two for one, ”said Kevin Bennett, CEO of MotoRefi, in an interview.
Bennett describes the insurance industry’s method of consolidation as “horizontal”, providing convenience for the client while increasing an insurer’s profits.
MotoRefi, he says, rotates this concept 90 degrees.
“We’re really launching vertical consolidation, the idea that you can consolidate auto insurance with refinancing your car,” Bennett said.
The amount of money that can be saved on auto insurance depends on the vehicle, driver, and level of coverage. But Bennett says his company uses the same model that he says saves those who refinance their car loans through the site about $ 100 per month.
“We leverage our existing technology stack, borrower profiles and relationships with our refi clients and major players in the auto finance and insurance industry to secure incredible rates that we pass directly to our clients,” Bennett said.
So far, MotoRefi is working with what Bennett has described as a “large national carrier” but said the company “will add more in the near future”.
At the moment on the MotoRefi site there is a auto insurance page invite visitors to “find out more” what they can do if they want to refinance a loan.
“We are in the process of contacting a client for whom we think we can offer an attractive offer and asking them questions about their level of interest. If so, we connect them with that carrier, ”Bennett explained.
The idea of bundling insurance and loan refinancing came from customer feedback, Bennett said.
“We started talking to our customers about how we can help them differently … and they told us that we would like you to help us get a better deal on car insurance as well,” he said. declared.
This demand may be rooted in the feeling of many owners that their vehicle has become a liability rather than an asset, Bennett speculated. He pointed to a Study 2020 by the Triple A revealing that the annual cost of owning a vehicle can reach $ 10,000.
This latest offering for MotoRefi comes during a period of rapid two-year growth for the company. When that announcement A $ 45 million Series B round of funding last May, MotoRefi announced that between Q1 2020 and Q1 2021, its revenue increased sevenfold, loan volume quintupled and its team been multiplied by 2.5.
This latest injection of funds follows a $ 10 million investment by Moderne Ventures in January.
Bennett says MotoRefi’s new bet of combining car loan refinancing with an insurance matchmaking service is not just a good business decision, but an innovative combination of two technologies stating, “It really brings fintech (financial technology ) and insurtech (insurance technology) to help the consumer by using advanced technology.