Car insurance startup Metromile has snagged a $90m Series E led by a pair of insurance juggernauts: Japan’s Tokio Marine Holdings and Canada’s Intact Financial.
Currently available in California, Arizona, Illinois, and 5 other states, the SF-based company plans to use the new funds to continue nationwide expansion, and to further enhance the use of artificial intelligence in their claims processing.
Less money for less miles
Since its inception, Metromile has raised nearly $300m in funding (including a $191.5m round back in 2016). The company, aimed at low-mileage drivers, started out as an insurance broker but has since moved into handling claims as well.
According to Crunchbase, Metromile’s whole thing is that if you don’t drive much, you shouldn’t have to cough up as much for auto when your car isn’t moving — who knew it could be so simple?
And the space is getting competitive
In March, Venturebeat reported that Midwestern auto insurance startup Root Insurance raised a $51m Series C, making it one of the largest Series C rounds ever raised by a tech startup.
But, Root doesn’t subscribe to a pay-per-mile plan, which could give Metromile the generational leg up on attracting heavy hitters like Tokio and Intact Financial.
Or, as Bloomberg puts it, “As baby boomers retire and millennials flock to cities, two insurance giants are betting on people to drive a lot less.”