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Clearcover Auto Insurance Review: From an Industry Expert on Insurance


Clearcover Auto Insurance is one of the latest private passenger auto insurers to disrupt industry norms. In November 2017, Kyle Nakatsuji, CEO, and Derek Brigham, COO, swung open the doors of Clearcover’s Chicago, IL headquarters. Their mission is straightforward: gear the auto insurance product and service towards a fast-paced, high-tech society that’s bored with current insurance offerings. The Millennial customer, as Clearcover sees it, just wants to get buying insurance off their to-do list with minimal effort. Clearcover offers low-priced auto coverage for drivers in California, Illinois, Texas, Ohio, Arizona, UtahWisconsin, and Louisiana, with plans of eventually expanding nationwide.

The Protection

Unlike the big-name auto insurers, Clearcover only sells their insurance products online. Clearcover sells the same legally mandated car insurance plans you can buy from brand name insurers. The carrier’s standard insurance options include:

  • Liability (Bodily Injury and Property Damage): Pays for damages to the other driver’s vehicle and body if you are at fault in a crash.
     
  • Collision: Pays to repair your vehicle after an accident, no matter who is at fault.
     
  • Comprehensive: Pays to repair damage to your car that’s caused by situations like a crash, deer hit, rocks, or hailstorm.
     
  • Medical Payments: Pays for medical care of yourself and your passengers after a car accident.
     
  • Uninsured Motorist (Bodily Injury and Property Damage): Pays for your own medical and auto repairs if the other driver in an accident was at fault and doesn’t have liability coverage.

Clearcover only has two add-on coverage options available. Yet the additional protections you can purchase are unique, and many drivers will find them beneficial.

Transport Coverage: This benefit is a modern twist on rental car coverage. If you’re in an auto accident and your banged-up vehicle is at the repair shop, Clearcover will give you money to use for transportation solutions. The Transport claim money you receive can be used for a rental car or an alternative option like public transit or Uber/Lyft.

Rideshare Endorsements: Clearcover also recognizes that many drivers nowadays rely on extra income from driving Uber or Lyft. If you’re one of those people, Clearcover will still offer you coverage so long as you purchase the additional rideshare coverage. The rideshare endorsement is refreshing since finding an insurance carrier to cover your private passenger vehicle while you are using it for a commercial job isn’t always easy.

Since Clearcover only sells one type of insurance product, customers do miss out on bundled discounts and the ease of working with only one insurer for all their coverage needs. Of course, the company’s counter to this point is that their auto rates are already very low, and most clients end up saving plenty of premium without relying on discounts.

The Carrier

Clearcover is technically an MGA selling fully underwritten personal auto insurance through Response Indemnity Company of California and Lyndon Southern. Both of Clearcover’s underwriters are owned by Fortegra Financial Corporation, which has an A-, Excellent A.M. Best financial stability rating. The rating is a positive detail for new Clearcover clients that might be a bit skeptical about the insurance startup’s financial security.

The new auto insurer has raised $104.5 million from venture capitalists. Clearcover has seen phenomenal growth, writing 3x as many auto policies in 2019 versus 2018, resulting in 4x premium growth. Since Clearcover operates with a lean staff, no sales agents, and no massive marketing campaigns, this generous amount of investment dollars will probably go quite far to advance Clearcover’s specialized API technology and launch additional writing states.

Since November 2017, Clearcover has been BBB accredited and currently has an A+ BBB rating. The Clearcover website promotes the company’s positive client reviews. The carrier reports an average of 4.3 stars/5.0 stars based on 544 reviews from Google, BBB, and other third-party review sites. Nearly all the negative reviews for Clearcover are related to a bad claims experience, which is not uncommon in the insurance industry.

The Claims

There are multiple ways to file a claim with Clearcover:

  • Clearcover Mobile App (24/7) - Android and iOS
  • Over the phone: 855-444-1875 (9 am to 7 pm CST, Monday through Friday)

Customers can rely on the mobile app for even more than just claims, including the following:

  • Request roadside assistance
  • View insurance ID cards
  • Change the payment method
  • Schedule glass repairs
  • View both upcoming and past payments
  • Make an immediate payment
  • Live chat with a Clearcover advocate

Clearcover’s sleek technology extends to the mobile app since it’s received very high insured ratings. Its Apple rating is 4.3 stars/5.0 stars, and the Google play rating is 3.8 stars/5.0 stars. Many busy consumers may not care too much about the limited office hours since the mobile app is always available while on-the-go.

Where is Clearcover Auto Insurance Available?

Clearcover Insurance State Coverage Map

With an additional 11 states set to open in 2020!

The Conclusion

Clearcover founders, Derek and Kyle, have more than 25 years of combined insurance knowledge, which they’ve leveraged to create an exciting new insurance concept. The company has decided to push an old-fashioned product into the new millennium through advanced technologies and creative brand-building ideas. Their approach is to rely on data to deliver lower-cost premiums, as well as more efficient customer service. Nice work, Clearcover, and welcome to the insurance market!

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At your service,
Young Alfred

Disclosure: Clearcover is one of the many options Young Alfred offers for auto insurance. Young Alfred did not receive any compensation or direction from Clearcover in writing this review.