Westlake Village, California-based autonomous vehicle insurance technology company Avinew has raised $5 million in seed funding. Avinew specifically focuses on the autonomous vehicle market. This round of funding was led by Crosscut Ventures. American Family Ventures, Draper Frontier, and RPM Ventures also participated in this round.
Founded by Dan Peate — who is the former assistant VP at London-based financial services company Aon — Avinew provides coverage to fleet operators that own cars with advanced safety features. The proof-of-concept is being piloted with two insurers ahead of a launch in select states this year, according to VentureBeat. And Avinew is expecting to retain substantial market share in the $81 billion autonomous vehicle premium market by the end of 2026.
“The cars we drive are changing, and there’s a huge opportunity for auto insurance to change as technology helps our cars and roads become safer,” said Peate in a statement. “Our goal is to enable the safety, savings, and freedom that come with autonomous driving. We believe providing consumers with insurance solutions that incentivize them to use features like Autopilot, Super Cruise, Co-Pilot 360, and ProPILOT Assist will make the roads safer for all of us.”
On the heels of this announcement, Avinew also hired Jeremy Snyder as chief operating officer — who was previously the head of Tesla’s global business development and special projects. As a ten-year Tesla veteran, Snyder is bringing substantial automotive experience and insights to the company.
Avinew has built a mobile app that utilizes artificial intelligence to collect telematics data and detect when semi-autonomous or autonomous features are being responsibly used. This includes platforms like Tesla Autopilot, GM Super Cruise, and Nissan ProPILOT Assist.
With that information, Avinew will be able to determine whether users are eligible for discounts on premiums. And Avinew learned during pilot tests that nearly 7 in 10 participating Tesla drivers said that they would consider switching to an insurance policy with a discount for autopilot usage.
“We are impressed by the innovation and ingenuity that Dan and the team at Avinew are demonstrating as they strive to reinvent auto insurance for the autonomous age,” added Crosscut managing partner Rick Smith. “Avinew is well on its way to bringing auto insurance programs to market that will incentivize and inspire consumers to embrace and use new auto tech in their daily lives. It’s a tremendous opportunity.”