Clearcover is an AI based car insurance company that raised 50 million dollars in its latest series. Earlier it raised 43 million dollars in Series B, which brings its total to 104.5 million dollars.
Kyle Nakatsuji, the CEO and Co-founder of the company, mentioned the reasons as to why the company raised the capital. He said that the company had 130 employees since 44 years. Now with this capital, he wants to change that. The company can add 40-50 more employees. Clearcover works in Illinois, Arizona, Utah, Ohio and California. And it aims to be in over 10 states in 2020.
Many new start ups are making it difficult for the giants like Geico, Progressive, and All state. Clearcover is one such competitor which makes purchasing car insurance more efficient and less expensive. There are many sources also that are available online to provide the car insurance quote comparison that is making this business even more competitive. That’s why customers opt for it greatly.
One of the main reasons why Clearcover is able to keep its costs low is the way it acquires customers. It does this through an API platform which allows the company to integrate with partners that interact with customers when an offer of insurance or an insurance quote becomes relevant.
Their costs of acquisition is half as compared to what it is for the others. They use technology to improve the cost structure and that allows them to offer lower prices. Nakatsuji said “You could describe us as the ‘Amazon’ for car insurance.”
Because of the world becoming digital, Clearcover becomes more relevant day by day. More Customers file claims and look for insurance digitally. Search terms like best credit card for me also indirectly lead the customers to ways by which they can take care of their insurance properly.
It isn’t a surprise that 90 percent of Clearcover’s policyholders use its app. And the percentage is substantially higher than the rest of the industry. Also, about 60 percent of Clearcover customers submit claims digitally through the app.