Metromile Announces $191.5M in Funding; Acquires Insurance Carrier
Today, Metromile, the pioneer of pay-per-mile car insurance in the United States, announced $191.5 million in funding which the company is using to fuel growth initiatives, advance nationwide expansion and acquire an insurance carrier. This means that Metromile will underwrite its own policies and manage the entire claims process from start to finish, providing customers a faster, more fair and seamless claims experience.
Intact Financial, CPIC, Index Ventures, New Enterprise Associates (NEA), First Round Capital, Mitsui, SV Angel, Metromile Founder and Chairman David Friedberg and well-known entrepreneur Mark Cuban participated in the company’s recent financing events. Series D funding closed for $103.1 million plus an additional strategic investment for $50 million from CPIC. In late 2014, Series C financing closed for $38.4 million. The total capital raised by Metromile is $205.5 million.
"Closing this financing round not only accelerates our nationwide expansion but allows Metromile to operate as an end-to-end insurance company which includes providing our customers a fully seamless claims experience," said Dan Preston, CEO at Metromile.
"This foundation, coupled with our expertise in technology, will allow us to deliver exciting new features to our drivers that make car ownership easy, personal and affordable while providing an exceptional customer experience."
"Our goal, in partnering with Metromile, was to build a relationship that would allow both organizations to strengthen their core competencies in order to enhance the customer experience," said Karim Hirji, Senior Vice-President, International & Ventures, Intact Financial Corporation. "We look forward to this ongoing collaboration as Metromile redefines the marketplace with its unique business model, innovations and smart technology offerings."
"Metromile is a proven leader in usage-based insurance technology,” said CPIC Property. "Our relationship with Metromile gives us the opportunity to more closely understand the pay-as-you-drive model, allowing us to create more innovative products and a better service experience for the younger and digitalized generation of the future."
Metromile is licensed nationwide but currently underwriting policies in N.J., Ore., Pa., and Va. and will underwrite policies in Calif., Ill., and Wash in the coming weeks. In the event that customers need to file a claim, each customer will have a dedicated claims representative to ensure the claim gets filed quickly and fairly. Metromile’s claims team is comprised of industry experts with over 20 years of experience at major insurance companies, with both extensive knowledge of best practices as well as innovative plans to improve the experience. Additionally, as a technology-driven company, Metromile will also be introducing new updates and features that will continuously improve the experience.
Metromile is the leader in pay-per-mile car insurance in the United States, saving low mileage drivers $500 on average each year. Additionally, Metromile’s smart driving app and in-car telematics device help customers pinpoint their car’s exact location via the vehicle locator, track detailed information on every trip they take using trip tracking, keep their car in tip top shape with vehicle diagnostics and car health, as well as avoid parking tickets via the app’s street sweeping alerts feature (in select cities). Metromile’s payper-mile insurance is available in seven states including Calif., Ill., N.J., Ore., Pa., Va., and Wash. The company has rapid state expansion plans in the coming year.