Firms Merge For Auto Dealer Insurance Sales

NU Online News Service, Jan. 24, 1:09 p.m. EST?Two California firms specializing in insurance sales at autodealerships announced today they have merged to create a companythat will sell coverage to car customers at showrooms using anonline connection.

No financial terms were disclosed for the agreement combiningCartel Marketing of Encino and TurboCoverage Inc. of Palo Alto intoa new firm called ExpressLink that will have Encino as itsheadquarters.

ExpressLink said it is gearing up for a national rollout of itsoperation.

The company said joining the two firms would create an insuranceplatform that leverages the strength of Cartel's 20-year-oldinsurance distribution network and TurboCoverage's"first-of-its-kind" technology platform for online autoinsurance.

TurboCoverage has placed Internet-connected kiosks at variousCalifornia dealerships, the company said.

Phil Barry, ExpressLink chief executive officer, said the newfirm could offer consumers and dealers a better way to secureinsurance because of "our proven track record of success," anexperienced management team and board of directors, and a set ofstrategic partners.

The company said that using its system, consumers are able toarrange coverage "in minutes" and immediately take possession oftheir vehicles, while satisfying state insurance requirements. Atthe same time, ExpressLink asserted that it would help vehicleretailers sell more units and improve overall customersatisfaction.

ExpressLink said it plans to roll out its platform nationallythrough an exclusive agreement with Computerized VehicleRegistration, a wholly owned subsidiary of Automatic Data Processin Roseland, N.J. and Reynolds and Reynolds of Dayton Ohio.

The company noted that CVR, and Reynolds and Reynolds haverelationships with more than 80 percent of the dealers in thecountry.

Jack Edelstein, president of ExpressLink said, "Our strategicpartnership with CVR provides ExpressLink with a footprint toexpand our national sales efforts, while giving us a very importantinterface to the ADP and Reynolds and Reynolds dealer managementsystems. As a result, we will move quickly to build a nationalbusiness."

ExpressLink said it will leverage CVR's national sales force tosell to automotive retailers.

"We will benefit from the integration of the ExpressLink AutoInsurance product with the major dealer management systems toprovide a more efficient product," said Dale Penn, vice president,sales and marketing of ExpressLink.

ExpressLink said its typical customers at auto insurance dealersare usually defined as "non-standard" drivers?primarily first-timemotorists with no previous insurance; those whose coverage haslapsed, or those considered higher risk based on their previousdriving record.

According to ExpressLink, the merged operation starts with asales level of more than 70,000 policies a year, making it thelargest single, point-of-sale insurance provider in the country.The company offers insurance products in California, Nevada andArizona, and plans to be approved in the 40 most populous states in2002.

Besides, Mr. Barry, Mr. Edelstein and Mr. Penn, ExpressLink saidits top management includes: Robert Humphries, chairman; DavidDiem, chief operating officer; Laurie Holcomb, national salesmanager; Pam Vogt, vice president of finance; Jon Danley, vicepresident of administration, and Sean Willis, director ofinformation systems.

ExpressLink's board members, in addition to Mr. Humphries, Mr.Barry, Mr. Edelstein and Mr. Diem, include:

? Michael Smythe, formerly president of Smythe European, Inc.,the nation's fifth-largest Mercedes Benz and the second-largestVolvo dealership. Mr. Symthe was formerly Chairman of the Board ofTurboCoverage.

? Eric McAfee, principal in Berg McAfee Companies and CaganMcAfee Capital Partners, a member of President Bush's InformationTechnology National Advisory Board.

? Ron Goldsberry, chairman of the board of OnStation, ane-commerce company providing software for the automotiveaftermarket.