SAN FRANCISCO — Gabi, which provides a free, online “personal insurance shopper,” has raised $9.5 million in Series A funding, led by Canvas Ventures. Also joining the round are: Correlation Ventures, Northwestern Mutual Future Ventures, Securian Ventures and prior investors A.Capital Ventures and Project A.
Gabi plans to use the funds to accelerate its nationwide expansion in 2018.
According to Princeton Survey Research Associates International, 62% of insurance customers believe insurance shopping is too time consuming. The study also found one in three drivers (36%) never shops around for auto insurance quotes. That, according to Gabi, is unfortunate because shopping around often reaps savings of hundreds of dollars a year per customer.
“We estimate roughly $50 billion are overpaid by insurance customers in the US every year, and we’d like to put some of that money back into our customers’ pockets,” said Hanno Fichtner, CEO and Co-Founder, Gabi. “Instead of relying on insurance agents who may be driven by commission or only compare a few quotes, Gabi’s technology automatically scours the 25 largest insurance companies in the US, including Nationwide, Travelers, and Safeco, for the best rates and most relevant offerings.”
Based in San Francisco, Gabi is automating insurance shopping. The company began offering auto and home insurance in California in 2017. Today, Gabi-sourced insurance is available in California, Ohio, Texas, North Carolina, Pennsylvania and Arizona. Gabi currently offers insurance for auto, home, renters, umbrella and life.
“Gabi’s technology continually ‘comparison shops’ and provides data-driven recommendations. We give our customers peace of mind knowing we are always looking out for them since insurance rates and offerings constantly change. We have seen two out of three of our customers save money on insurance. And the average savings on insurance from using Gabi is $460 per year,” Gabi Co-Founder and CPO Krzysztof Kujawa said.
Gabi connects to the current auto or home insurance account of the customer, compares prices, discovers the best offers, and presents opportunities to switch. The customer then manages all insurance products using Gabi’s app. Unlike existing auto comparison shopping sites, Gabi offers customers a service agent to speak with if desired, or they can interact only with the app. If customers choose to switch at any time, they are not required to repeatedly fill out long insurance forms, and they are not spammed with unwanted calls or emails.