CoverHound, an online insurance agency, and Metromile, a pay-per-mile auto insurance provider, announced Monday that they are teaming up to provide more coverage options for customers of both companies.
In addition to increasing auto insurance options for CoverHound shoppers, the partnership gives Metromile’s car insurance customers direct access to homeowners and renters insurance from CoverHound’s online platform.
In a joint statement, the companies said their strategic partnership leverages each other’s unique offerings, efficient call center operations, experienced licensed advisors and shared focus on delivering good customer experiences. The intent is to make it easier for consumers to purchase “the right auto, homeowners, renters, motorcycle and other property and casualty insurance,” the companies said.
Metromile’s pay-per-mile model, designed for drivers who drive less than 10,000 miles a year, saves these low-mileage drivers $500 on average each year. The company’s pay-per-mile insurance is currently available in seven states—California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington.
The CoverHound partnership comes on the heels of Metromile’s September announcement that it acquired Mosaic Insurance, a carrier licensed in all 50 states, for $22 million.
With rapid expansion plans in place, the acquisition means Metromile will handle the entire underwriting and claims management process in-house going forward. (Some insurance products are currently underwritten by insurers in the National General Insurance Group, according to Metromile’s website.)
CoverHound, a California-based InsurTech company launched in 2010 to allow personal auto insurance customers to compare and purchase coverage online, has recently expanded also. In late September, CoverHound added a full suite of business insurance offerings from small business customers to its platform. Now businesses with 20 or fewer employees can buy workers compensation, commercial auto, business owners packages and other commercial lines coverages from Chubb, Liberty Mutual, Berkshire Hathaway Direct, Hiscox, Progressive and Employers. In October, CoverHound also started offering cyber insurance bundled with cybersecurity products online, with the launch of a separate CyberPolicy.com site.
CoverHound CEO Keith Moore describes his company as “a trusted advisor for curated choice,” which simplifies and tailors coverage choices based on personal and business needs of the customers. According to Moore, the CoverHound value proposition is focused on end-to-end fulfillment—in other words, providing accurate bindable rates that aren’t subject to change. In an interview with Carrier Management recently, he also explained that the company business model is built around service levels (measured by net promoter scores) and that CoverHound’s team of team of advisors is compensated by service levels, not commissions.
The full interview is published in the fourth-quarter edition of Carrier Management magazine and will be available online to Carrier Management members later this month.
In today’s media statement, Moore said, “CoverHound’s and Metromile’s business strategies and service-oriented cultures complement each other well,” adding that both companies are working to make insurance a more innovative industry, and each brings unique product offerings to the table. “Working together we hope to make finding the right insurance much easier than it has often been in the past,” he said.
Katy Allen, Director of Business Development at Metromile, said: “We recognize that our pay-per-mile car insurance customers have insurance needs beyond car insurance, such as homeowners or renters insurance, so we’re pleased to partner with CoverHound to give our customers access to a broad selection of insurance options.
“As two San Francisco-based Insurtech companies, Metromile and CoverHound share a lot in common, and we believe that combining our strengths will help us better fulfill consumers’ needs,” she said.
Sources: Metromile, CoverHound