Mile Auto, an insurtech based in the US, has secured $10.3m in seed funding to expand its low-cost car insurance offering.
The funding round was joined Sure Ventures Emergent Ventures, Thornton Capital, and Ulu Ventures.
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Mile Auto uses the latest technology like computer vision and analytics to offer insurance options based on mileage to low-mileage drivers. It is popularly known as pay-per-mile auto insurance.
The Auto insurer has patented computer vision and machine learning technologies, which helps it in collecting and validating odometer (distance measuring instrument) data.
Ulu Ventures CEO, co-founder and managing director Miriam Rivera said: “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.
“Mile Auto’s data-driven approach to insuring an underserved segment, lower-mileage drivers, is exactly what the market needs right now.”
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By GlobalDataThe company will use the money to expand its business in the US auto insurance market by hiring more people and adding new distribution channels.
It also seeks to onboard white-label partners and expand automaker network.
Mile Auto CEO Fred Blumer said: “Mile Auto makes car insurance fair and transparent for lower mileage drivers who have been overpaying and underserved for too long.”
The insurer also announced its partnership with Ford Motor Company to save eligible owner on their insurance rates.
In 2019 it has launched a similar program with Porsche Financial Services.
Mile Auto is currently available in Arizona, Georgia, Illinois and Oregon.
