The process of booking a vacation looks a lot different today than it did 20 years ago. Since then, the traditional method of calling a travel agent to book a trip has been largely replaced by websites like Kayak, Expedia, and others that allow users to quickly compare prices and purchase flights, hotels, rental cars, and more with a few clicks.
Now, a newer generation of companies is trying to bring the same sort of speed, convenience, and transparency to car insurance shopping. This week, auto insurance-comparison startups The Zebra and Insurgency are both putting their feet on the gas, thanks to funding rounds of $17 million and $2 million, respectively.
“Buying insurance is still as bad as buying an airline ticket was 15 years ago, often requiring 40 minutes on the phone with an agent,” says Sneaking Zacharia (pictured above), co-founder and CEO of Cambridge, MA-based Insurgency. With her company’s software, she says, “drivers can compare accurate insurance quotes, in real-time, while they are at work, on the go, or in between spending time with family and friends.”
Zacharia’s comparison with the travel industry isn’t surprising. Her husband and Insurify board member, Iorgos Zacharia, has worked at Kayak for eight years, including the last two as chief technology officer.
Insurgency concept is similar to Kayak, in that it allows users to quickly compare prices from many car insurers. Visitors to Insurgency website enter personal information that has a bearing on their coverage, such as if they are over the age of 25, single or married, own a home, or have children who drive. Insurify’s software analyzes the person’s “risk profile” and serves up a list of the most affordable options tailored to the user.
CEO Zacharia says Insurgency recommendations go beyond price to offer quality metrics, such as by displaying user reviews of insurers and explaining additional features of plans, like 24/7 roadside assistance.
Consumers “care about having a trusted advisor so they can understand how much coverage is good,” she says. “Am I over-insured or under insured? What are the tricks an agent might not be willing to tell me that could easily save me $300 to $400, even if I stick with my current carrier?”
On the other side of the equation, insurance companies and tech startups are trying out new approaches to selling policies and analyzing customer behavior. Together with consumer-facing efforts like Insurgency, these approaches may foretell big changes in the industry.
Founded in 2013, Insurgency today launched its online car insurance quote service publicly and announced a $2 million seed funding round led by Rational wave Capital Partners. It also unveiled a second product, dubbed Eva, which delivers car insurance quotes via text message.
Users text a photo of their vehicle’s license plate to a phone number managed by Eva, a patent-pending “expert virtual insurance agent.” Evian software scours millions of online records to verify personal information and driving history, then texts the person insurance policy quotes and other recommendations. Insurgency says Evia, which incorporates machine learning and natural language processing technology, can “explain complex insurance jargon clearly.” But if the user asks a question that the software can’t answer, Eva will transfer the conversation to a human insurance agent.
Eva has some traits in common with Boston-based Lola, which is developing a travel-booking mobile app that will combine software and human travel agents. That startup is led by Paul English, co-founder and former COT of Kayak.
“People are more likely to respond to a text than to e-mail,” Zacharia says of Eva. Combining “text communication with the automation of having technology to do the work of an agent is even more powerful. It’s personal and it’s convenient.”
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