February 13th, 2013
This article first appeared on VentureBeat
To help you cover your liability bases, CoverHound is at the ready.
CoverHound’s technology helps people compare multiple insurance policies and plans. The startup has raised a $4.5 million round to grow the team and develop new products. Its engine collects and compares data about car, motorcycle, renters, and homeowners insurance. Consumers can also buy and manage their plans directly on CoverHound and adapt their policies as circumstances change.
“We’ve spent the past year building an insanely complex comparison engine that takes just seconds to sift through tens of thousands of different carrier and coverage combinations to find you the best value,” said founder and CEO Basil Enan in a statement. But we’re just getting started. Our dream is to become the brand that consumers trust for all of their insurance needs.”
Insurance is a massive industry that has remained relatively untouched by startups. Changes in national health policy caused a huge uptick in the number of consumer health engagement companies last year, and other insurance verticals are ripe for disruption as well.
“Insurance is a massive industry that’s seen far too little innovation and is still terribly inefficient,” said investor Tom Loverro of RRE Ventures. “CoverHound empowers consumers for the first time to make informed auto and home insurance buying decisions rather than simply relying on the last commercial they saw on TV.”
RRE Ventures led this round, with participation from Bullpen Capital and existing investor Blumberg Capital. This is CoverHound’s first institutional round of funding. Enan initially started the company in 2010 after spending seven years working in the insurance industry. The founders participated in the AngelPad incubator program in 2011 and have since launched the platform nationwide and added a long list of strategic partners, including Progressive, Safeco Insurance, Travelers, and Fidelity property group.
CoverHound is based in San Francisco and has raised $6.5 million to date.