ImpactAlpha, October 5 — The average cost of car insurance for a good driver with good credit in the U.S. is $1,592 per year, compared to $2,812 per year for a good driver with bad credit. At least 26 million Americans have no credit history.
Austin-based LOOP insures drivers based on weather conditions, traffic data and how they drive rather than demographics, credit scores, income and education. LOOP launched in Texas this month with a waiting list of more than 30,000 drivers.
LOOP’s Series A round was co-led by Foundry Group and the venture fund 01 Advisors. “LOOP is going after a huge opportunity to better serve a massive, yet overlooked and undervalued population,” said Foundry’s Jaclyn Hester.
Participating investors include Freestyle VC, Blue Fog, Uprising Ventures, Concrete Rose, New Voices Fund, Earn Your Leisure and rapper/investor Nas. It closed a $3.3 million seed round in January.