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.”
