Clearcover has secured a massive $200 million round of venture capital financing, and the digital auto insurance startup plans to use the monetary infusion to fuel product development and expansion, and also support widespread hiring.
“This new capital will allow us to continue our growth across the country, providing better insurance to more customers,” Kyle Nakatsuji, Clearcover’s Co-founder and CEO, said in prepared remarks.
A number of investors participated in the Series D round, including lead investor Eldridge, with participation from existing investors American Family Ventures, Cox Enterprises, OMERS Ventures, as well as several new investors. To date, Chicago-based Clearcover has raised $329 million overall, including a $50 million financing round in January 2020.
Clearcover describes its approach as automating traditionally manual insurance tasks with modern technology, resulting in lower operational costs. These savings are then passed on to the customer in the form of lower prices. Among innovations Clearcover cites: Clear Claims, a digital claims process that provides payment on eligible claims within 30 minutes or less. The company started as an MGA but is now focused on becoming a full stack carrier doing business nationally.
Clearcover noted it has expanded into several new states and is now available in Arizona, California, Georgia, Illinois, Indiana, Louisiana, Maryland, Missouri, Nebraska, Ohio, Oklahoma, Pennsylvania, Texas, Utah, and Wisconsin.