We have some exciting news to share. Today, we officially begin selling our own auto insurance program in Texas.
After three years operating as a national insurance brokerage offering a hassle-free way for drivers to find better coverage with other insurance companies, the next stage of our mission is to provide a program that we manage as well.
By offering this insurance, we can now begin redesigning coverage in the same way that our app refined the process of buying insurance: providing a service that is clear, intuitive, and satisfying to use.
Auto insurance frustration is widespread
This matters because drivers are clearly unhappy with the auto insurance status quo.
A survey we recently ran in Texas found 62 percent of drivers find shopping for auto insurance frustrating. Almost 30 percent felt it took too much of their time and 40 percent had doubts about even being able to find lower premiums. (If you’re interested in the survey results, you can read more about it here.)
We also found that these frustrations mean nearly one in three drivers — equivalent to around five million Texans — haven’t shopped for a better rate in over two years.
This is significant because according to J.D. Power, drivers that switched insurers after shopping around for a new policy, saved on average $356 per year. If drivers are reluctant to shop around, they’re leaving money on the table — and Texans pay the 13th highest amount on auto insurance in the U.S.
We want to change this by addressing the reasons drivers dislike insurance shopping.
The technology in our app is built to help get you a quote in as little as three minutes. After this, our agents are free to chat via text message at a time that works for you to make insurance as convenient as possible.
Our set up is designed to give you the strongest possible chance of finding the right policy with as little effort as possible.
In Texas, we offer policies from our partner companies as well as from our own program, meaning that if we can’t find you the rate you’re after there’s a good chance one of our partners will — all without you having to do any more searching.
Where to next?
Cover has come a long way since graduating from Y Combinator’s W16 batch but with the launch of our new car insurance service in Texas, our mission remains the same: to take the frustration out of insurance by making it simple, transparent, and fair.
We’re continuing to make buying insurance a more user-friendly experience and customers in other states can still enjoy the service we offer as an insurance brokerage.
So keep in touch with us on our social channels for updates: Instagram, Twitter, Facebook, LinkedIn, Medium.
For more details on the launch view the full media release.