Credit Karma estimates that consumers overspend $21 billion a year on auto insurance. In light of this, the fintech is providing a simplified service for consumers to find cheaper auto insurance policies.
The company announced this week that it is expanding its auto insurance tool to generate insurance suggestions to consumers by analyzing government information on drivers and vehicles — combined with data from credit bureaus and public insurance rate filings. Now members no longer have to manually input 30-40 data fields as is typical with digital quoting.
Currently, the fintech is only offering the expanded service in Texas and California but intends to roll it out to more markets in the coming months.
More than 8 million members have synced their vehicles to Credit Karma’s auto offerings since the service launched less than a year ago.
“It’s encouraging to see such high engagement among our members,” Rory Joyce, director of product management, said in a statement. “Because auto insurance is a major expense of owning a car, building an insurance feature was a natural extension to help our members make financial progress.”
Credit Karma will also educate members through an interactive experience that shows how key factors such as moving violations and credit scores can impact insurance rates.
“With our refinance experience, we’ve helped our members save nearly $150 million on their auto loans in under a year,” said Kenneth Lin, founder and chief executive, in a statement. “We plan to do the same for insurance.”
Founded in 2007, Credit Karma identifies financial products for its members and has facilitated more than $40 billion in credit lines across financial products. While the company is better known for providing consumers with free credit scores, it generates a profit by providing leads to financial services.