Clearcover, a US-based insurtech company focused on providing car insurance solutions, has raised $200m in a Series D funding round to strengthen its digital insurance offerings.
Existing investors American Family Ventures, Cox Enterprises, OMERS Ventures, along with several other new backers participated in the round led by Eldridge.
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The latest infusion takes the company’s total funding raised until now to $329m. It follows the company’s $50m Series C financing in January last year.
Clearcover said the new capital will help the company bolster its offerings by investing in and growing its insurance, product, and engineering teams. The company plans to double its overall headcount by next year.
Clearcover co-founder and CEO Kyle Nakatsuji said: “In an industry ripe for transformation, we see ourselves as innovators in digital car insurance experiences while providing our customers more value for less money.
“This new capital will allow us to continue our growth across the country, providing better insurance to more customers.”
Clearcover reduces operational costs by automating traditionally manual insurance tasks. According to the company, these savings enable it to offer lower prices for the customers.
Clear Claims, a digital claims process offered by Clearcover, is said to provide payment on eligible claims within 30 minutes.
A McKinsey & Co. survey reveals that over 65% of consumers who turned to digital claims handling practices during the pandemic plan to continue those habits post-Covid.
Eldridge chairman and CEO Todd Boehly said: “As the industry continues to evolve from analogue to digital, Clearcover is well positioned to scale while delivering a competitive product and better experience to consumers across the US.”
Earlier this month, Clearcover selected Wolters Kluwer to support its compliance initiatives on behalf of its car insurance customers.
