Funded startups have partnered with the likes of Uber and Progressive and span rate-comparison platforms and pay-per-mile insurance.
Funding to tech startups in the auto insurance industry has already risen to a five-year high in 2015, according to CB Insights data.
Although they account for a smaller share of insurance tech funding compared to health benefits-related startups, auto insurance tech companies raised over $220M since 2011. Some of the categories they cover include comparison platforms, pay-per-mile insurance, and data analytics for usage-based insurance.
The largest financing of 2015 year-to-date went to auto insurance-comparison engine CoverHound‘s $33.3M Series C led by insurer ACE Group. Of note, Google earlier partnered with CoverHound to help power its Google Compare tool.
Outside of price comparison, new usage-based applications have also garnered more venture capital in the past couple years. Censio, a startup that recently announced a connected car app for Progressive, raised a $10M Series A led by General Catalyst Partners. Metromile, which offers pay-per-mile insurance including to ride-sharing drivers through a partnership with Uber, has raised $14M from investors including Felicis Ventures, First Round Capital, NEA, and Index Ventures.
Tech startups in the auto insurance space span a broad range of geographies and focus areas. The graphic below highlights a selection of the auto insurance-tech startups active in today’s market that have received investment in the past couple years.
|(Censio)||Smartphone-only usage-based car insurance platform||$10M // Series A||Oct-15|
|(CoverHound)||Auto insurance quote-comparison and buying portal||$33.3M // Series C||Sep-15|
|(Driveway Software)||App giving drivers and auto-insurance providers data about driving habits||$10M // Series A||Jul-15|
|(Acculitx)||Data analytics on driver behavior for insurance underwriters||$1M // Seed||Jul-15|
|(EverQuote)||Online car insurance quote-comparison tool||$1.6M // Seed VC||Apr-15|
|(Schutzklick)||Simple insurance products with fixed terms including auto insurance||$8M // Series B||Mar-15|
|(Goji)||Auto insurance quote-comparison portal||$14M // Series C||Apr-15|
|(Estify)||Digitizing paper insurance claims for auto repair||$1.5M // Seed VC||Oct-14|
|(Metromile)||Pay-per-mile insurance provider and smart driving app and hardware||$10M // Series B||Apr-13|
|(Snapsheet)||Virtual insurance claims operations||$10M // Series B||Dec-13|
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