Clearcover, an online car insurance company, has raised $43 million in Series B funding led by media, communications, and automotive services company Cox Enterprises. American Family Ventures, IA Capital Group, Lightbank, and Hyde Park Angels also participated in this round of funding. And Silicon Valley Bank provided debt financing.
“It’s gratifying to see our customer-focused, technology-driven business model resonating with the market and we’re excited to partner with Cox Enterprises on our mission to provide millions of drivers across the US with better insurance experiences and lower prices,” said Clearcover CEO Kyle Nakatsuji in a statement. “We’ll use the funding to further invest in our API platform, launch new states, integrate new distribution partners and hire more than fifty people across our Engineering, Data Science and Customer Advocate teams.”
Clearcover uses a technology-driven approach such as its industry-first API platform to provide affordable car insurance to thousands of drivers since the company launched in California early last year. Since then Clearcover rapidly grew its API platform relationships and sold thousands of policies. And the company has helped drivers collectively save millions of dollars on car insurance.
“Cox Enterprises is proud to take a leading role in accelerating and supporting innovation within the car insurance industry. With the rise of new digital platforms, drivers can now find better, non-traditional insurance options and Clearcover is positioned to make a huge impact in a roughly $250 billion market,” added Cox Enterprises’ Senior Director of Strategy and Corporate Development Spencer Boice. “Clearcover shares our vision of using data and technology to drive smarter connections and more convenience online.”
Photo Credit: Clearcover
Clearcover has also integrated with a number of distribution partners across automotive, insurance, and financial service companies like Cars.com, Chime, and The Zebra. And the company will be expanding its state footprint and partnerships this year.