InsurTech startup Mile Auto raises $10.3M in funding to disrupt the $311 billion car insurance market by letting drivers pay only for what they use

The estimated auto insurance in the US in 2021 is estimated at $311 billion. The global vehicle insurance market is predicted to reach $1.96 trillion by 2027, according to estimates from Acumen Research And Consulting.

Today, the auto insurance industry operates on an antiquated one-size-fits-all model where customers are paying for insurance they don’t necessarily use instead of charging for what they use without infringing their privacy.

Enter Mile Auto, an Atlanta, Georgia-based InsurTech startup that uses advanced computer vision technology and decision analytics to free lower-mileage drivers from the financial penalties of today’s one-size-fits-all insurance model and offer affordable car insurance options based on mileage.

Unlike the traditional insurance companies, Mile Auto leverages its patented computer vision and machine learning technologies to collect and validate odometer data without the need for extra hardware, mobile apps, or GPS tracking. By having clear insights into actual usage, Mile Auto is changing the way car insurance is purchased by requiring drivers to pay only for what they use, resulting in savings of up to 60%. Currently Mile Auto is available in Arizona, Georgia, Illinois, and Oregon, with plans to expand into additional states within the next six months.

Today, Mile Auto announced that it has secured $10.3 million in seed funding from investors including Ulu Ventures, Emergent Ventures, Thornton Capital, and Sure Ventures. Mile Auto will use the funding to expand the availability of its insurance offering to half of the U.S. auto insurance market by the end of 2021, as well as hiring, adding new distribution channels, onboarding of white-label partners, and expanding its automaker network.

In conjunction with the funding, Mile Auto also announced today a partnership with Ford Motor Company to save Ford owners on their auto insurance rates. In 2019, Mile Auto launched a similar program with Porsche Financial Services.

Founded in 2017 by Fred Blumer, Jim Cook, Joe Fuller, and Scott Nelson, Mile Auto provides a pay-per-mile car insurance service that saves lower mileage drivers money. Mile Auto’s leadership team brings decades of experience in vehicle data and auto insurance ranging from building connected vehicle systems for Mercedes Benz to usage-based insurance programs for State Farm.

Mile Auto has patented technologies that help low-mileage drivers save as much as 40% off their current auto insurance rates by collecting and validating odometer data without the need for extra hardware, mobile apps or GPS tracking. Mile Auto’s pay-per-mile insurance programs are currently active in Arizona, Georgia, Illinois and Oregon, with several additional states expected to be added in 2021. Strategic automaker partnerships include Porsche Financial Services and Ford Smart Mobility.

The auto insurance industry has operated decades behind other industries that have undergone digital transformation. Today it is at a pivotal juncture where innovation is finally unlocking cost savings for consumers,” said Miriam Rivera, CEO, co-founder and managing director of Ulu Ventures.

Rivera added: “Mile Auto’s data-driven approach to insuring an underserved segment, lower-mileage drivers, is exactly what the market needs right now. We place a high value on transparency, values and vision, and we believe that Mile Auto’s founding team of serial entrepreneurs can have a great impact on the industry. This is demonstrated by innovative partnerships they’ve struck, like the one they are announcing today with Ford. This is why we invested early, and we’re excited to be a part of the company’s journey as they grow.”

“Mile Auto makes car insurance fair and transparent for lower mileage drivers who have been overpaying and underserved for too long,” said Fred Blumer, CEO of Mile Auto. “With this funding, we will aggressively expand our footprint into new states, grow our team to best serve our customers, expand our network of automotive and enterprise partners, and accelerate the momentum we’ve gained so far.”