(Image source: Clearcover website.)
Clearcover, a Chicago-based digital auto insurance startup, has closed $200 million in Series D funding, led by Eldridge (Greenwich, Conn.), with participation from existing investors American Family Ventures (Madison, Wisc.), Cox Enterprises (Atlanta), OMERS Ventures (Toronto), as well as several other new investors, according to a Clearcover statement. The company reports that it has raised $329 million in total funding to date.
Clearcover describes it mission as becoming the digital auto insurer of choice for modern drivers. The company says that the funding will used to accelerate innovation of its digital insurance offerings by investing in and growing its insurance, product, and engineering teams, and will double its overall headcount by next year.
“The car insurance experience is becoming increasingly digital, and customers want streamlined, customizable options when choosing a carrier,” comments Kyle Nakatsuji, Co-founder and CEO, Clearcover. “In an industry ripe for transformation, we see ourselves as innovators in digital car insurance experiences while providing our customers more value for less money. This new capital will allow us to continue our growth across the country, providing better insurance to more customers.”
Clearcover automates traditionally manual insurance tasks with modern technology, with the aim of lowering operational costs. These savings achieved are then passed on to the customer in the form of lower prices, the company says. More than 65 percent of consumers who adopted digital claims handling practices during the pandemic intend to continue those habits post-COVID, according to a McKinsey & Co. survey. Among the innovations Clearcover boasts are Clear Claims, which it describes as an advancement in the digital claims process that provides payment on eligible claims within 30 minutes or less.
Positioned to Scale
“Clearcover’s technology-first platform offers customers a fast, affordable alternative to legacy auto insurance,” comments Todd Boehly, Chairman and CEO, Eldridge. “As the industry continues to evolve from analogue to digital, Clearcover is well positioned to scale while delivering a competitive product and better experience to consumers across the US.”
This funding round comes after a successful 2020 for Clearcover. The company reports that during the year it expanded into several new states and is now available in Arizona, California, Georgia, Illinois, Indiana, Louisiana, Maryland, Missouri, Nebraska, Ohio, Oklahoma, Pennsylvania, Texas, Utah, and Wisconsin. Clearcover also announced two new additions to its C-suite, CFO Norman Smagley and Chief Insurance Officer Vandana Venkat.