Pay-per-mile insurance technology developer Just insure has netted $8m in a funding round, which will help it move into additional US states.
The round was led by CrossCut Ventures, ManchesterStory and Western Technology Investments.
Just Insure is currently only available in Arizona, but it hopes to enter Texas, Nevada, Pennsylvania, Ohio and Georgia.
The InsurTech company claims the average price of auto insurance in the US is around $1,600 each year, and nearly $2,000 for those in their twenties. These prices are high due to the use of demographic indicators, such as zip codes, credit rating and marital status, in underwriting.
Instead of this, Just Insure leverages telematics and only charges the drive for the miles driven. This method helps customers save around 40%, it claims.
The company has experienced strong growth this year. It claims to have issued 1,000 new policies in the second quarter of 2021, which is up ten-fold from the same period in 2020. Furthermore, the company has reported a 1,400% increase in revenue in the same period.
Just Insure founder and CEO Robert Smithson said, “We are the only auto insurer that’s using telematics to rewrite the rules of what’s possible in auto insurance.
“People are simply driving less as a result of increased work-from-home rates, and this isn’t changing anytime soon. Our approach enables us to offer customers rates that are truly reflective of their driving, which in turn rewards drivers, removes rate bias, and ultimately makes the road a safer place for everyone. We’re eager to continue developing our telematics capabilities and growing our team with these new funds.”
With the close of the round, the company has raised a total of $15m in equity.
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