High Definition Vehicle Insurance (HDVI), a technology-driven commercial auto insurance provider, announced it has secured $40 million in growth capital, bringing its total funding to over $87 million. The funding round was co-led by existing investors 8VC, Autotech Ventures, Munich Re Ventures, and Weatherford Capital.
The funding will support enhancing HDVI’s telematics-driven products, expanded coverage, and improved tools for insurance agents as the company scales nationwide.
Following this funding round, Alexei Andreev of Autotech Ventures and Jake Medwell of 8VC will join HDVI’s Board of Directors, along with existing members Jacqueline LeSage of Munich Re Ventures, Will Weatherford, and HDVI’s Reid Spitz and Chuck Wallace.
HDVI also announced key leadership transitions. After 7 years as CEO, co-founder Chuck Wallace will become a strategic advisor and continue supporting the company’s long-term vision. And co-founder Reid Spitz, appointed president in January 2024 to prepare for this shift, will now serve as CEO and guide HDVI’s next phase of profitable growth.
HDVI has expanded its reinsurance panel to include some of the world’s largest and most financially secure reinsurers to support the growth strategy. And this expansion diversifies HDVI’s reinsurance support and increases HDVI’s underwriting capacity to meet the rising demand for its data-driven insurance solutions.
The company’s flagship product HDVI Shift utilizes telematics to help customers reduce risk and save up to 20% upfront and on monthly premiums based on safety performance. Last year alone, HDVI customers logged nearly one million miles of safe driving daily and saved $3.2 million, triple the previous year’s savings.
Since launching HDVI Shift in 2021, HDVI has experienced significant, sustained growth, achieving a 107% compound annual growth rate (CAGR) and a loss ratio well below the industry average.
HDVI has also revised pricing and underwriting, enhancing traditional methods with approaches that base premiums on actual driving behaviors. This leads to fairer and more personalized pricing.
HDVI’s telematics models also continue to improve. Along with leveraging telematics, HDVI integrates data from the Federal Motor Carrier Safety Administration and other sources to enhance risk assessment and pricing. Nearly 90% of customers see safety improvements within their first policy term.
KEY QUOTES:
“HDVI’s innovative use of real-time telematics is reshaping commercial trucking insurance. This latest fundraise underscores the confidence we have in HDVI’s leadership and ability to deliver profitable growth.”
– Will Weatherford, managing partner at Weatherford Capital
“With the infusion of capital, HDVI is well positioned to continue leading the industry in leveraging technology in commercial auto insurance. Our team remains committed to continued innovation using telematics and other data sources along with new AI tools throughout the commercial auto policy lifecycle to drive risk reduction and efficiency at scale.”
“We’ve harnessed over 7.5 billion miles of telematics data to enhance our understanding of risk models, refine our pricing models and underwriting process, and improve how we manage claims in-house to deliver a more streamlined, efficient, and customer-centric experience. These insights allow us to be highly price competitive while attracting fleets that prioritize safety and operational efficiency.”
– Red Spitz
“I look forward to supporting my co-founder Reid in his new role. Reid is the right person to lead HDVI as it continues its strong growth and innovation in the future.”
– Chuck Wallace
“We’re excited to have the backing of global leaders in reinsurance who chose to partner with HDVI due to our preeminent use of telematics in underwriting and data-driven approach. Their support strengthens our ability to protect insureds and serve the increasing demand for innovative transportation insurance.”
– Chief Underwriting Officer Adam Barnett
