Chicago Startup Raises Money to Compete in Auto Insurance
Jan. 23, 2019—Chicago startup Clearcover has raised $43 million to expand its auto insurance business in Illinois and other states, betting that its online platform is more efficient and its policies cheaper than established companies, according to the Chicago Tribune.
The trick is in the technology. For instance, three-fifths of claims are handled digitally, which cuts costs, and most policies are sold online, reducing overhead, a Clearcover official said in the report.
While other insurance startups are also expanding like Columbus, Ohio-based Root Insurance that raised $100 million last summer, State Farm and Allstate accounted for more than one-quarter of the private passenger auto insurance market in 2017.