Jooycar raises US$700,000 with HCS Capital to bring insurtech system to US

Contxto – Chilean insurtech Jooycar won’t let any pandemic get in the way of its expansion into the United States. Heck, it even raised US$700,000 through HCS Capital to get there. With a CEO already announced to lead its operations there, the startup intends to launch in September of this year. 

In the meantime, it will continue to work in Chile, Mexico, and Peru helping people and businesses obtain more inexpensive car insurance based on their driving habits.

• Related article: Insurtech Jooycar to expand IoT and Big Data platform into US

Jooycar wants to reward good driving

With self-isolation it’s more than likely that cars gained less mileage. Meanwhile, their insurance bill remained the same. Moreover, with so much economic uncertainty, people and businesses are likely looking for ways to save money.

Because of these circumstances, Jooycar considers there’s a large market opportunity to be found in the United States.

Through a special device installed on a vehicle, Jooycar can measure the car’s average mileage, drivers’ habits, and other bits of information. When the driver wants to acquire car insurance, they and the insurance company can use this data to create a customized premium.

Naturally, good driving habits and behavior will be rewarded with cheaper insurance.

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Insurtech is adding flexibility to the industry

Insurance has historically been a large industry—but not necessarily a flexible one. And with our ever-shifting landscape, it needs to offer customers more personalized products that fit their needs. Both for the insurer’s own good and for companies to stay relevant.

In that sense, one can appreciate Jooycar’s approach when it comes to car insurance.

Often insurers will pigeonhole drivers based on their age and where they live. In the US other factors like a person’s credit score matters too. They’ll also factor in the type of vehicle and mileage.

Meanwhile, the way they evaluate drivers’ habits is very cut and dry.

They only know a person is reckless if they’ve received a ticket, been in a crash, and so on. Al the while, “good” driving behavior is constrained to an absence of reports. There are no brownie points for careful driving or rarely using the car.

Good driving merits a reward and this insurtech is making it possible.

Related articles: Tech and startups from Chile!

-ML