Avinew, an InsurTech company offering auto insurance for autonomous and semi-autonomous vehicles, announced $5M in seed funding. The investment was led by Crosscut, with additional participation from American Family Ventures, Draper Frontier, and RPM Ventures.
Through Avinew’s proposed insurance solutions, consumers and fleets who own vehicles equipped with autonomous and semi-autonomous capabilities will have access to insurance that will reward them for using their vehicle’s safety features. Currently, select vehicles from Tesla, Mercedes, Ford, GM, Nissan, Audi, Volvo, and more will be eligible.
“The cars we drive are changing, and there’s a huge opportunity for auto insurance to change as technology helps our cars and roads become safer,” said Dan Peate, Founder and CEO of Avinew. “Our goal is to enable the safety, savings, and freedom that come with autonomous driving. We believe providing consumers with insurance solutions that incentivize them to use features like Autopilot, Super Cruise, Co-Pilot 360, and ProPILOT Assist will make the roads safer for all of us.”
Industry research from Accenture and Stevens Institute of Technology forecasts that insurance coverage for autonomous vehicles will bring $81B in new premiums to the U.S. auto insurance industry by the end of 2026.
Avinew’s insurance programs, which are expected to be available later this year in select states, will be autonomous-usage-based. The company uses artificial intelligence (AI) and telematics to detect and measure when semi-autonomous or autonomous features are responsibly engaged to determine premium discount eligibility. Avinew has successfully completed proof-of-concept pilots with two insurers. A pilot using Tesla vehicles resulted in high driver satisfaction using Tesla’s Autopilot function in conjunction with Avinew’s beta mobile app. Nearly 7 in 10 participants said they would be interested in switching to an insurance policy that included a discount for Autopilot usage.