Credit Karma announced earlier this week it is now offering car insurance in Texas and California. Credit Karma’s members in those states are now able to see what they could be paying for auto insurance based on what members like them are paying for the same coverage. According to the credit score platform, this move into the insurance space will address the mispricing issue of Americans’ auto insurance policies and will soon arm its more than 80 million members.
While sharing more details about the insurance service, Kenneth Lin, founder and CEO of Credit Karma, stated:
“We built the auto experience to help put money back into the pockets of our members. With our refinance experience, we’ve helped our members save nearly $150 million on their auto loans in under a year. We plan to do the same for insurance.”
Lin also noted that he and his team estimate that Americans are overspending on auto insurance by nearly $21 billion a year and believe that bringing simplicity and transparency to Credit Karma members will help them save. Rory Joyce, Director of Product Management of Credit Karma, then commented:
“Our investment into auto has exceeded our expectations, and it’s encouraging to see such high engagement among our members. 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 went on to add that it will roll out insurance services to more states in the coming months.