Venture Capital: Clearcover, The Digital Car Insurer, Scores $200M Funding
According to sources, Clearcover has become a unicorn after the funding.
Clearcover, a startup selling car insurance digitally, has raised $ 200 million in a Series D funding round led by Eldridge, with participation from existing investors American Family Ventures, Cox Enterprises, OMERS Ventures, as well as other new investors. (Intrado GlobeNewsWire)
According to Reuters, Clearcover also tipped the valuation scales to achieve a $1 billion tag – thus winning the hallowed status of an auto insurtech unicorn.
The latest round takes Clearcover’s total funding to $329 million.
Digital insurance the future
Clearcover’s business model allows for insurance lower premiums by digitizing insurance tasks that have been generally processed manually.
For instance, the company’s Clear Claims feature pays out eligible claims in 30 minutes or less by using a digital claims process.
Further, most consumers who took recourse to digital claims during the pandemic are likely to continue that experience even after the COVID crisis passes.
Clearcover reported 120% year-over-year sales growth in Q2 2020 and was nearing a $100 million run rate by December, up from $70 million in January last year.
“The car insurance experience is becoming increasingly digital and customers want streamlined, customizable options when choosing a carrier,” said Kyle Nakatsuji, Co-founder and CEO of 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’s technology-first platform offers customers a fast, affordable alternative to legacy auto insurance,” said Todd Boehly, Chairman and CEO of Eldridge. “As the industry continues to evolve from analog to digital, Clearcover is well-positioned to scale while delivering a competitive product and better experience to consumers across the US.”
Clearcover is backed by Response Indemnity Company of California and Lyndon Southern Insurance Company. Both of these companies are owned by Fortegra Financial, which has been rated A-Excellent by AM Best.
Use of funds
Clearcover will use the money to double its workforce and to expand to 25 states by next year.
It currently has a presence in 15 states.
Related Story: German Challenger Bank N26 Wants To Move Insurers’ Cheese
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