Financial technology startup Credit Karma said on Tuesday it is expanding into insurance through a new service that makes it easier for users to find cheaper auto insurance policies.
The tool generates suggestions by analyzing government information on drivers and vehicles together with data from credit bureaus and public insurance rate filings, bypassing the need for users to manually input information into long forms, the company said.
. We believe that Americans spend about $ 21 billion a year on auto insurance and that bringing our members simplicity and transparency will help save them, aya said Kenneth Lin, founder and CEO of Credit Karma.
The service is available in California and Texas, but the company plans to make it available in other states across the country.
A growing number of et insurtech da hopes to modernize the insurance industry using digital technologies to deliver better customized delivery decisions and cheaper products.
Insurtech companies raised 1.3 billion dollars from investors in the first six months of 2018, according to the consultancy firm Willis Towers Watson’s September report, which increased by 2 percent compared to the same period of the previous year.
Founded in 2007, Credit Karma is known for providing the best free credit points and helping users find products such as personal loans and credit cards. Receive payments from product providers as an aid to creating potential customers.
The company, which has more than 80 million users, is one of the best-funded fintech companies globally. Offering services such as free tax filing, the flagship is going beyond the free credit score tool.
Credit Karma was collecting information from state motor vehicle departments for an existing auto service, which already advised on car loans and followed the estimated value of cars. The company said that more than 8 million users launched a year ago connected their vehicle information to the service.
Rory Joyce, head of product management at Credit Karma, said: lem Since the auto insurance has a huge cost to own a car, the establishment of an insurance feature was a natural addition to our members’ financial advance. Credit
The new tool also enables users to visualize how changes in credit score and moving violations can increase insurance rates.
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