Suncorp buys strategic stake in Car Next Door

Suncorp buys strategic stake in Car Next Door | Insurance Business

Suncorp buys strategic stake in Car Next Door

Suncorp has made a strategic investment in Car Next Door, Australia’s largest peer-to-peer car-sharing platform, as part of the Australian startup’s current $10 million funding round.

Suncorp has become Car Next Door’s strategic insurance partner in a deal that includes the development of innovative insurance products for the fast-growing sharing economy and joint promotional activity.

Read more: Insurance industry must be part of booming sharing economy

Gary Dransfield, Suncorp insurance CEO, said the investment will strengthen the company’s core motor insurance business and enable it to better understand mobility trends.

“We know the traditional way Australians own and use cars is evolving, and this partnership will allow us to learn and better service our customers’ needs,” Dransfield said. “As Australia’s largest motor and CTP insurer, we can support Car Next Door’s members with insurance, and we can also introduce our customers to a new way to safely and easily rent out their cars in their own neighbourhoods.”

“Insurance is at the core of our car-sharing community's success,” said Will Davies, Car Next Door co-founder and CEO. “With over 3,000 cars already shared through our platform, and rapid growth ahead, Suncorp's expertise and networks will be invaluable when those cars need to be repaired. We also look forward to welcoming more of Suncorp's millions of car-owning customers to our neighbourly car-sharing community, so that they can earn money from their car when they're not using it.”

Dransfield said Suncorp has already updated its current comprehensive car insurance products across AAMI, Suncorp, and GIO to allow customers “to opt-in to coverage when they use their vehicles for ridesharing.”

“Our customers can currently use their cars on platforms like Car Next Door, with insurance provided by the platform when it is rented out,” Dransfield said.