Insurance Technology Industry News

TMCNet:  Leaky Launches Its Car Insurance Comparison Site Nationwide and Announces Funding to Make Shopping for Insurance Easy and Less Frustrating

[December 05, 2012]

Leaky Launches Its Car Insurance Comparison Site Nationwide and Announces Funding to Make Shopping for Insurance Easy and Less Frustrating

SAN FRANCISCO --(Business Wire)--

Leaky.com, a simple way to comparison shop for car insurance, today announced the launch of its nationwide service. Leaky does away with the burden of filling out cumbersome and separate forms with each insurance carrier just to compare car insurance prices offers free insurance monitoring and alerts so drivers won't miss opportunities to save more down the road. The company also announced it received $670,000 in seed round funding from 500 Startups, Box (News - Alert) Group, Start Fund, Y Combinator, and several prominent angel investors.

"Leaky aims to fundamentally change the experience of shopping for insurance by streamlining and reimagining the process for something that has always been a dreaded chore," said Jason Traff, CEO of Leaky.com "With the positive response to our beta and the time and money we are helping drivers save (over 5 years and $25 million so far), we are excited to now launch nationwide and put people in the drivers seat when it comes to insurance comparisons."

It takes on average between 7 to 10 minutes to fill out forms to obtain a quote from just one insurance company, a process that has to be repeated with each different carrier to get multiple estimates. The Leaky eperience takes only a couple of minutes and the results are presented in a simple snapshot that allows people, at-a-glance, to quickly see insurance estimates by carrier and price. On average, people find they can save up the $362 based on Leaky estimates. Prior to its nationwide launch, the beta service was available in California only.

"The Leaky team is applying technology in a clever way to take the agony out of picking car insurance; leveraging data that was always -- until now -- the domain of traditional insurance agents and carriers," said Alexis Ohanian, angel investor and entrepreneur known for his work at Hipmunk and Reddit. "Leaky has identified a huge pain point in the $200 billion auto insurance industry and helped me get the best deal on my own car insurance."

Leaky spent the last 12 months creating a comparison-pricing engine, based on the state regulatory documents that car insurance companies are required to file. The Leaky system accurately estimates how much each insurance provider will charge. Leaky makes thousands of calculations per person to provide estimates from multiple insurance companies in a single snapshot. The Leaky snapshot links people directly to the insurance providers of their choice to pursue an actual quote.

Key features of Leaky include:

  • Monitoring: By creating a profile, Leaky will monitor your insurance and let you know when you are eligible for discounts based on a number of factors including your driver profile and your accident history.
  • Change Calculator: If you move to a nearby town or across the country, add a new driver, or buy a new car - Leaky can quickly calculate how the changes will affect your insurance rates in any given case.
  • Customized price estimates from over 100 different insurers across the U.S.

About Leaky

Dropping out of MIT's (News - Alert) Sloan School of Management to become an insurance agent is unlikely path but exactly what Leaky co-founder Jason Traff did; later teaming up with co-founders Jake Piccolo and Geoffry Sumter to take the hassle out of the insurance comparison process. The company raised seed funding in 2012 and is headquartered in San Francisco where it spent the last 12 months building a price comparison engine to simplify shopping for insurance.


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