Cover, the mobile-first insurance brokerage, today officially begins selling its own policies in Texas to address widespread frustration with insurance shopping felt by drivers in the state. In a recent survey, Cover found that five million drivers in Texas haven't shopped around for a better rate in over two years, even though Texans pay the 13th highest premiums in the U.S. The new service — an evolution from the company's nationally-licensed insurance brokerage — combines a streamlined process for buying policies, using smartphone technology such as camera and location services, with the ability to set fairer rates. These features are designed to alleviate common insurance shopping pain points for Texans. Survey data published by Cover shows that the vast majority of Texans (62%) are frustrated by auto insurance shopping, citing the time it takes to shop (29%) and doubts about the potential to find lower premiums (40%) as reasons they don't shop more often.
Cover collects $16M to insure your gadgets, pets… anything
People procrastinate about buying insurance because it’s such a boring and complicated chore to compare policies. But Cover combines plans from 45 insurance companies into a single marketplace so it’s easy to find the best one for your car, home, rental, business, personal property, pets, jewelry and more. Now Cover is building powerful onboarding tricks like a driving school that earns you lower car insurance rates, and a way for Shopify merchants to sell warranties for their items. The potential to use tech to run circles around the old insurance brokers has attracted a new $16 million Series B for Cover led by Tribe Capital’s Arjun Sethi, who led the Series A and sits on the startup’s board. The round was joined by Y Combinator, Social Capital, Exor and Samsung, and brings the company to a total of $27.1 million in funding.
Cover raises $8 million to insure your belongings
Applying for homeowner’s insurance should be as easy as waving your phone camera around your room. That’s the premise behind Cover, an app that recommends insurance based on what’s photographed in your home. Whether it’s electronics, jewelry or even your pet, Cover will cover just about anything. Cover is licensed to sell insurance and they work with Progressive, Allstate, Nationwide and other major providers to tailor a plan for the customer, taking about a 10 to 15 percent commission for referring the business. Now they’ve raised an $8 million Series A led by Social Capital and are announcing a previously undisclosed $3 million seed round. Arjun Sethi from Social Capital will be joining Cover’s board.