Credit Karma Addresses the “Mispricing Issue”

As it estimates that Americans overspend on auto insurance by nearly $21 billion per year, Credit Karma announced that it will now allow members in California and Texas, to see what they could be paying for auto insurance based on what members like them are paying for the same coverage.

This move aims to address the “mispricing issue” of Americans’ auto insurance policies and will soon be available to more than 80 million Credit Karma members, who will get the information needed to make the best decision on their insurance policy, “without the headache.”

Credit Karma’s existing auto offering pulls driver and vehicle information from the DMV and other sources directly into the auto product, and since launching less than a year ago, more than 8 million members have synced their vehicles. Now, with “just the tap of a button,” Credit Karma can combine the DMV information with data from credit bureaus and public insurance rate filings to unlock much of what is needed to estimate insurance quotes.

“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. We estimate that Americans are overspending on auto insurance by nearly $21 billion a year and believe that bringing simplicity and transparency to our members will help them save.” – Founder and CEO of Credit Karma, Kenneth Lin.

“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.” – Director of Product Management at Credit Karma, Rory Joyce.