“With this funding, we will aggressively expand our footprint into new states, grow our team to best serve our customers, expand our network of automotive and enterprise partners, and accelerate the momentum we’ve gained so far,” Fred Blumer, CEO of Mile Auto, said in prepared remarks.
Mile Auto said the money will help expand the availability of its insurance offering to half of the U.S. auto insurance market by the end of 2021.
In a related move, the company is also partnering with Ford to help save Ford owners on their auto insurance rates – a similar program to one it launched with Porsche Financial Services in 2019.
Investors in the seed round for Mile Auto include Ulu Ventures, Emergent Ventures, Thornton Capital, and Sure Ventures.
Hippo-owned Spinnaker Insurance is Mile Auto’s insurance underwriter, with reinsurance through Swiss Re.
Mile Auto leverages its patented computer vision and machine learning technologies to collect and validate odometer data without the need for extra hardware, mobile apps or GPS tracking. By having clear insights into actual usage, Mile Auto requires drivers to pay only for what they use, resulting in up to 60 percent savings. Currently Mile Auto is available in Arizona, Georgia, Illinois and Oregon, with plans to expand into additional states within the next six months.
Launched in 2019, Mile Auto’s leadership team has experience in vehicle data and auto insurance, from building connected vehicle systems for Mercedes Benz to usage-based insurance programs for State Farm, the company said.
Mile Auto’s financing comes after a number of telematics-related financing, partnership and product launch news items items in recent weeks.
Upstream Security raised $36 million from Japanese carrier Mitsui Sumitomo Insurance as part of a strategic partnership designed to advance telematics in insurance. Arity, an Allstate-founded mobility data and analytics startup, debuted a new telematics tool designed to help insurers more efficiently leverage driving behavior for better pricing. The MGA Pouch also launched with a seed funding designed to help fund development of its telematics technology to reward small businesses for safe driving. There is also Loop, an MGA that plans to sell auto insurance policies with premiums priced by telematics-produced driving behaviors and AI-provided data on unsafe road conditions.
Source: Carrier Management
