Clearcover, a digital car insurance provider, has raised $50 million in a Series C round led by Omers Ventures.
I hopped on the phone with Kyle Nakatsuji, co-founder and CEO of Clearcover, to find out what the company has been up to since its last funding and what it plans to do with its new capital.
He told me that Clearcover had raised its Series B with the intent of growing its team and continuing to build out its platform.
A growing number of startups are challenging traditional auto insurance companies such as Geico, Progressive, and Allstate.
Nakatsuji told Crunchbase News that Clearcover is able to keep its costs down in a number of ways that help it offer lower premiums than competitors.
“At our core, we use technology to augment our cost structure and that allows us to offer lower prices,” Nakatsuji told me.
Ninety percent of Clearcover’s policyholders use its app, the company said, which it claims is “substantially higher than the rest of the industry.” Also, about 60 percent of its customers submit claims digitally through its app.
Most consumers already start their insurance shopping process online, he said, and that’s why it makes sense for a company like Clearcover to build its model exclusively around digital distribution, Dziabiak added.