DriveSmart
DriveSmart Auto Care Inc. is a U.S. administrator of vehicle service contracts covering vehicles up to 20 years old, distributed through dealerships, brokers, agents, and direct consumer channels, and underwritten by Lexington National Insurance Corporation.
- Company typePrivate
- Founded2016
- HeadquartersToms River, United States
- Headcount1–10
- GTM typeB2C
- OfferingServices
What DriveSmart does
DriveSmart Auto Care Inc., operating as DriveSmart Warranty, is a U.S.-based administrator and distributor of vehicle service contracts (VSCs) — the products commonly marketed as extended auto warranties. Founded in 2016 and headquartered in Toms River, New Jersey, the company sells a single product line of extended vehicle protection covering vehicles up to 20 years old, distributed through automotive dealerships, independent brokers and agents, and direct-to-consumer channels via phone (888-980-0770) and email ([email protected]). The firm is a private for-profit corporation with 11-50 employees.
The company's core offering is backed exclusively by Lexington National Insurance Corporation, which underwrites the insurance risk on every contract. Coverage, deductibles, and claim terms are customized per vehicle based on age, mileage, and pre-existing conditions, and pricing follows an annual subscription/premium model. The technology stack is described as a vehicle service contract platform with claims processing capabilities — a claims and administration system rather than a software product — supported by 8+ years of operational experience and an FAQ-driven content website. There is no disclosed mobile app, API, or third-party integration surface.
DriveSmart's revenue model is recurring premium income on VSC contracts, billed annually with variable terms. Go-to-market is channel-led: dealership relationships and broker/agent distribution rather than direct consumer advertising. Geographic coverage is single-country (United States), with availability explicitly limited by state regulation ("Not available in all states"). In March 2024 the company received a $2,000,000 grant from the U.S. Department of Commerce to construct a new call center in Newport, Arkansas, projected to create 100-200 jobs and attract $900,000 in private investment — the most significant disclosed milestone in the company's history and its primary forward growth signal.
DriveSmart firmographics
Firmographics- Name
- DriveSmart
- Legal name
- DriveSmart Auto Care Inc.
- Website
- https://drivesmartwarranty.com
- Company type
- Private
- Founded year
- 2016
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- DriveSmart Auto Care Inc. is a U.S. administrator of vehicle service contracts covering vehicles up to 20 years old, distributed through dealerships, brokers, agents, and direct consumer channels, and underwritten by Lexington National Insurance Corporation.
- Ownership category
- akta.pro rank
DriveSmart industry classification
Industry- Product category
- Extended Vehicle Warranties / Vehicle Service Contracts
- akta.pro primary industry
- Auto Ancillary Warranties (Tire & Wheel, Paintless Dent, Key/Remote, Windshield) (FSAJALAB)
Keywords
Where DriveSmart is headquartered
LocationHeadquarters
- HQ city
- Toms River
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
DriveSmart business model
Business model- GTM type
- B2C
- Offering type
- Services
- Cost components
- Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure
Revenue model
- Vehicle Service Contract Premiums: DriveSmart generates revenue through the sale of extended vehicle protection plans (vehicle service contracts). Customers pay premiums for coverage that reimburses repair costs after manufacturer warranties expire. The company is backed by Lexington National Insurance Corporation which provides the insurance backing for these contracts.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Annual | Customized vehicle service contract coverage with variable pricing |
Go-to-market motion1 record
Distribution channels4 records
Marketing channels3 records
DriveSmart product offering
Product offeringCore offering
DriveSmart Auto Care Inc. sells extended vehicle protection plans (vehicle service contracts) that cover repair costs after the manufacturer's warranty expires, for vehicles up to 20 years old. The contracts are backed by Lexington National Insurance Corporation and are distributed through dealerships, independent brokers/agents, and direct-to-consumer channels. Customers pay recurring premiums and file claims through a phone- and email-based service infrastructure.
Product overview
DriveSmart Auto Care Inc. (DriveSmart Warranty) offers a single core product: vehicle service contracts that provide extended vehicle protection after the manufacturer's warranty expires. The company specializes in covering vehicles up to 20 years old with comprehensive coverage options, competitive pricing, and world-class customer service. The offering is backed by Lexington National Insurance Corporation and is distributed through dealerships, brokers, and agents.
Differentiator
Problem solved
Functional benefit
Products and services
- DriveSmart Vehicle Service Contracts Extended vehicle protection plans (vehicle service contracts) providing coverage for vehicles up to 20 years old after the manufacturer's warranty expires. Coverage, deductibles, and claim terms vary depending on vehicle age, mileage, and pre-existing conditions. Contracts are backed by Lexington National Insurance Corporation and sold through dealerships, brokers, agents, and direct-to-consumer channels to U.S. vehicle owners.
Quantifiable outcome
- Vehicles covered up to 20 years old
Companies that use DriveSmart
Customer profileNamed customers1 record
Segments1 record
Ideal customer profiles2 records
DriveSmart technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature1 record
DriveSmart partnerships and signals
Strategic signalScale indicators5 records
Recent moves4 records
Expansion highlights4 records
DriveSmart competitors and assessment
Company assessmentBroad incumbents
- JM&A Group (F&I product provider): JM&A Group provides F&I products and services — including vehicle service contracts — to franchised dealers. A broad incumbent in the same product category as DriveSmart, with a deeper dealer network but a narrower direct-to-consumer presence.
- Assurant (Assurant Vehicle Protection Services): Assurant is a large, publicly-traded insurance and F&I product provider with a vehicle protection division serving dealers and lenders. It is a broad incumbent in the same product category as DriveSmart, with vastly greater scale, capital, and dealer relationships.
Emerging players
- Toco Warranty: Toco Warranty is a newer entrant offering vehicle service contracts on a pay-per-mile or subscription basis. It is comparable to DriveSmart in product (extended vehicle protection) and target customer, but differentiates on flexible pricing models.
- ForeverCar: ForeverCar is a digital-first vehicle service contract administrator with a direct-to-consumer focus. It overlaps with DriveSmart in product (mechanical breakdown coverage) and target customer, but competes primarily online rather than through dealer/broker channels.
Direct peers
- Endurance Warranty: Endurance is a leading vehicle service contract provider offering extended mechanical breakdown coverage. Like DriveSmart, Endurance is an administrator (not the risk-bearing insurer), distributes through dealer and direct channels, and competes for the same pool of out-of-warranty vehicle owners.
- CarShield: CarShield is one of the largest direct-to-consumer vehicle service contract administrators in the U.S. Both companies sell extended vehicle protection plans backed by third-party insurers, with overlapping customer profiles (owners of out-of-warranty vehicles) and similar product structures.
- CARCHEX: CARCHEX sells extended vehicle protection plans directly to consumers and through dealer partnerships. It is a direct competitor to DriveSmart in VSC product structure, distribution approach (dealer + direct), and target customer (aging-vehicle owners).
- American Auto Shield: American Auto Shield is a vehicle service contract administrator selling extended coverage through dealers and direct channels. Comparable to DriveSmart in product structure, customer profile, and third-party-insurer-backed model.
- Easycare (Easycare Warranty): Easycare administers vehicle service contracts and related F&I products, distributed through franchised and independent dealers. Comparable to DriveSmart in product offering, channel-led distribution, and reliance on a third-party insurance carrier.
- Protect My Car: Protect My Car offers vehicle service contracts and maintenance plans, with multi-channel distribution similar to DriveSmart. Both companies target post-warranty vehicle owners and rely on third-party underwriting partners.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat3 records
Key risks7 records
Key highlights6 records
Customer concentration
DriveSmart social profiles
Digital presenceDriveSmart financial estimates
Financial estimateRevenue estimate
Valuation estimate
DriveSmart leadership team
Management profileNumber of profiles
DriveSmart funding detail
Funding detailFunding overview
Funding rounds1 record
Investors1 record
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
DriveSmart M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about DriveSmart
What does DriveSmart do?
DriveSmart Auto Care Inc. sells extended vehicle protection plans (vehicle service contracts) that cover repair costs after the manufacturer's warranty expires, for vehicles up to 20 years old. The contracts are backed by Lexington National Insurance Corporation and are distributed through dealerships, independent brokers/agents, and direct-to-consumer channels. Customers pay recurring premiums and file claims through a phone- and email-based service infrastructure.
Is DriveSmart a public or private company?
DriveSmart is a private company. It is classified as unknown and is currently operating.
When was DriveSmart founded?
DriveSmart was founded in 2016. It employs 1 to 10 people.
Where is DriveSmart based?
DriveSmart is headquartered in Toms River, United States, in the North America region.
How does DriveSmart make money?
One revenue line is on record: vehicle Service Contract Premiums.
Who are DriveSmart's main competitors?
Broad incumbents on record are JM&A Group (F&I product provider) and Assurant (Assurant Vehicle Protection Services). Emerging players are Toco Warranty and ForeverCar. Direct peers are Endurance Warranty, CarShield, CARCHEX, American Auto Shield, Easycare (Easycare Warranty) and Protect My Car.
Does DriveSmart have an API?
No public API is recorded for DriveSmart.
What industry is DriveSmart in?
DriveSmart's product category is Extended Vehicle Warranties / Vehicle Service Contracts. Its primary akta.pro industry code is FSAJALAB, Auto Ancillary Warranties (Tire & Wheel, Paintless Dent, Key/Remote, Windshield).