Credit Karma launches Karma Drive
Credit Karma has launched Karma Drive, a usage-based insurance product powered by Zendrive and in partnership with Progressive, which will allow users to potentially obtain an auto insurance discount based on their actual driving, with no requirements to purchase a new policy before seeing how much money they can save. Credit Karma members can access a 30-day driving trial directly from the Credit Karma app where they will receive feedback on their driving, and after the trial, members are alerted if they qualify for a discount from Progressive.
Just a few months ago Progressive launched Snapshot Road Test, a new feature in its Snapshot app that allows drivers to see if they might save on their car insurance rates before switching to Progressive.
In June, Root announced a similar move with travel and navigation app GasBuddy, however, Credit Karma is significantly larger when it comes to the number of users. The Intuit-owned company counts more than 110 million members in the U.S., Canada and U.K.
This isn’t Credit Karma’s first insurance experience – in 2018 it announced a new feature to allow users in select states to see what they could be paying for auto insurance based on what members like them are paying for the same coverage. The feature was made available after users synced their vehicles with the platform (Credit Karma pulls driver and vehicle information from the DMV and other sources), and currently more than 16 million members have done so. I’ve done it today and the process took a few seconds, after which the company retrieved info on my car and lease payments.
Credit Karma has been taking insurance more seriously. Between August and October, mediaalpha.com received 1.1M visits from creditkarma.com – a significant increase from the same period in 2019 when it drove 89K referrals to MediaAlpha. The company shared that its auto business, which includes loans, loan refinance, and insurance, has seen triple digit growth in 2020 “as many consumers have turned to Credit Karma to help them take control of their finances during these trying times.”
“For many of our members, a vehicle is their largest and most costly asset. Karma Drive delivers on our vision to bring transparency, fairness and accuracy to our members’ auto expenses with an easy opportunity to potentially save money on their auto insurance. Plus, it might even help them become more aware of ways to be a safer driver.” – Rory Joyce, senior director of product, Credit Karma Auto.
“Progressive continues to innovate and make it easier for good drivers to save on auto insurance. We are thrilled to collaborate with Credit Karma to bring this unique value proposition to their customers. This is an exciting opportunity for potential auto insurance savings on a platform that consumers trust and visit regularly to seek financial guidance.” – Jim Haas, Progressive’s Usage Based Insurance Business Leader.
Karma Drive is not available in the following states: AK, AL, CA, HI, MA, NC, NY, VA, WA, FL, SC.