Clearcover Review: Is It the Right Choice for You?

Clearcover was founded in 2016 by insurance industry veterans who wanted to create a tech-driven car insurance company. You can buy and manage Clearcover policies primarily (if not entirely) online or through the company’s mobile app. The insurer promises better coverage for less money, which it tries to accomplish through its tech-forward model that lowers overhead costs and passes those savings onto its customers.

But Clearcover’s complaints are nearly 4times higher than expected for companies of its size, suggesting it still has some wrinkles to iron out. Below, we cover who Clearcover may be the best fit for and what to watch out for if you decide to buy a policy.

Is Clearcover a Good Choice for Auto Insurance?

To get a general overview of Clearcover and whether it’s a good fit for you, let’s review how the company performs across five key aspects that are most relevant to prospective customers. The table below shows how Clearcover ranks in each category on a scale of one to five.

Where Clearcover stands out

Clearcover provides customers with an excellent app and website where you can easily manage your policy and, if necessary, claims — making it ideal for modern drivers. The insurer also provides low rates for drivers across several profiles, including people with a DUI.

Where Clearcover falls short

Rates are higher than average for drivers with an at-fault car accident and people older than 60. Clearcover doesn’t offer discount opportunities for the most part, opting to instead automatically factor those lower rates into its premiums.

Clearcover Reviews: What Real Customers Are Saying

Clearcover earns middling scores from Clearsurance, Trustpilot, and the Better Business Bureau (BBB), highlighting that many customers have had mixed experiences with the company.

Positive reviews mention two primary themes: a convenient experience and great prices, as showcased in the series of five-star reviews in the following screenshots.

But several negative reviews talk about sudden cancellation — most commonly for non-payment. A couple of reviewers mention finding out the company canceled their policies for non-payment the day after an issue. The reviewer below experienced cancellation even when they allegedly fixed the payment issue and paid their premium the day it was due.

And in the review below, Clearcover allegedly canceled the customer’s policy after a long back-and-forth email conversation, during which the customer continued to comply with the company’s requests.

What You Can Expect to Pay for Clearcover Car Insurance

While the overall average rate at Clearcover is $115 per month, that can change dramatically depending on your coverage level. Liability-only policies cost the least, but full-coverage policies, which include liability insurance, collision, and comprehensive coverage, cost more.

The table below shows how Clearcover’s rates compare to the industry average.

With national averages of $106 and $210 per month for liability and full-coverage policies, respectively, Clearcover offers relatively cheap car insurance for many drivers. But broad averages aren’t the best indicator of what you’ll pay due to the number of factors at play in determining your premium costs (we’ll review the most significant factors a little later in this article).

First, let’s see how Clearcover performs compared to its competitors.

Clearcover vs. the Competition

It’s important to consider how Clearcover stacks up to its competitors — both industry standards and new companies that are also disrupting traditional car insurance.

In the below table, we’ve compiled average premium costs and our Compare.com Rating to help you see where Clearcover fits within the industry.

Clearcover lags behind industry giants GEICO and Progressive in terms of customer satisfaction, industry reputation, and availability. But compared to other tech-forward newcomers Hugo, Toggle, and Mile Auto, Clearcover performs better with its overall rating, but not necessarily on price.

Breaking Down Clearcover’s Average Car Insurance Costs

Your driving record has a large effect on your car insurance rate because previous issues signal a higher chance of an insurance claim. Your credit can also affect costs — drivers with glowing credit histories usually pay significantly less than people with poor credit.

The table below illustrates how Clearcover’s rates change based on driving history and credit profile, according to Compare.com data.

Clearcover’s rates are typically lowest for drivers with clean records and good credit, but costs see a more significant increase than usual if those same drivers have spotty credit histories. Rates are most expensive (and higher than the national average) for people with a recent at-fault accident, suggesting Clearcover may not be a good fit for higher-risk drivers.

That said, drivers with a DUI stand to save the most with Clearcover, whose rates are well below average for these drivers.

Clearcover’s Average Rates by Age

Car insurance rates can also differ significantly based on your age. Younger drivers are more likely to be involved in car accidents, according to the AAA Foundation, which means companies charge them more for insurance. Still, that rate decreases steadily as you age — until you reach your 70s.

The following table shows what different age groups can expect to pay with Clearcover, according to Compare.com data.

Interestingly, rates from Clearcover don’t follow the same trajectory as common industry trends. Young drivers in their 20s can potentially save the most with Clearcover, and they’ll even pay less, on average, than drivers in their 30s. Rates for teen drivers are also significantly lower than the industry average.

But senior drivers pay higher-than-average rates and don’t have access to mature driver discounts found with many of Clearcover’s competitors. Even so, it’s still worth getting a quote no matter your age — especially if you live in a state where Clearcover offers cheaper-than-average rates.

Clearcover’s Average Rates by State

Rates vary by state due to a number of influencing factors, including the state’s insurance laws, claim rates, and driving conditions. For example, Georgia’s high percentage of uninsured drivers (18%) and populated roads are part of the reason premiums are more expensive there than in Nebraska, where roads are less congested and the rate of uninsured drivers is lower (8%).

Let’s review Clearcover’s average rates around the country.

Clearcover Car Insurance Discounts

Clearcover says it bakes discounts into premium pricing without you needing to sign up to receive them, including discounts for driving safely, paying in full, receiving electronic documents, and having a vehicle with certain safety features. For example, it offered me a homeowners discount when I was getting my quote.

Clearcover also offers a military discount but doesn’t specify the value. Active-duty service members and their children (under age 25) can receive an additional discount of 25% in Louisiana.

Other than what’s listed above, Clearcover doesn’t offer discount opportunities. The company instead focuses on offering the cheapest possible rates. But keep in mind that while Clearcover is more affordable than many competitors, it may not be the cheapest option for you.

Clearcover’s Available Auto Insurance Coverages

Cleacover offers the following coverage options:

• Bodily injury liability: Covers others’ medical costs when you’re at fault in an accident.
• Property damage liability: Covers costs to repair other people’s property you damage in an accident.
• Collision: Covers collision damage to your vehicle.
• Comprehensive: Covers non-collision damage to your vehicle, like from theft, vandalism, and severe weather.
• Personal injury protection (PIP): Covers your medical expenses, no matter who’s at fault.
• Uninsured and underinsured motorist: Covers costs when a driver without any or enough car insurance coverage hits you.
• Medical payments (MedPay): Similar to PIP, it covers medical bills, regardless of fault.
• Alternate transportation: Covers part of your rental car costs during a covered claim.
• Roadside assistance: Provides emergency services — like jump-starts, fuel deliveries, and locksmith services — when your car breaks down.

How to Purchase a Car Insurance Policy from Clearcover

You can get a quote and buy your Clearcover policy entirely online. The company can automatically pull your vehicle information, including the VIN, but you must provide your Social Security number to get a quote. It took me longer than expected — about eight minutes — to get my quote.

I started by going to the company’s homepage and clicking “Get a Quote.”

The first page showed me the five-step process (and referred to these steps throughout).

First, I entered my personal information, including my name, date of birth, address, marital status, gender, and more. Each question or two had its own page, and each page took around 10 seconds to load, which slowed down the process considerably.

Next, I gave details about my driving history, including any accidents or moving violations I was involved in over the past five years.

After completing that section, I answered a few questions about my vehicle, including how I use it and if I own it outright.

Finally, I gave my Social Security number since Clearcover uses credit history as a factor to determine my rate.

Finally, I received my quote. I was able to fully customize my coverages, including limits and deductibles. It was easy to tailor my policy to my exact needs.

Each coverage option had an information button I could click to get not only a definition of the coverage option but also an explanation as to why I might need it.

Overall, I liked how customizable the policy was and how easy it was to understand what it did and didn’t cover. But it was tedious to click through so many pages to get my quote.

What to Expect When Filing a Claim with Clearcover

Clearcover says it has one of the industry’s fastest claims processes. It encourages customers to file claims using the mobile app, which you can use to track your progress and potentially get an expedited reimbursement. Non-customers involved in a claim with a Clearcover customer can use an online form.

A handful of claims reviewers say the process works as it should — fast and entirely through the app. That was the below customer’s experience.

But the majority of online claims reviews are negative. The most common complaint is related to a prolonged claims process. For example, the customer featured below allegedly waited more than two weeks to get their payout after a total loss.

Likewise, the customer below also claims to have spent weeks waiting on a resolution to their claim.

More About Clearcover Insurance

Clearcover Auto Insurance FAQs

As a relative newcomer with a unique business model, Clearcover Insurance Company remains an enigma to many potential customers. Here are the answers to the most common questions asked about the insurance company.

Is Clearcover insurance legit?

Yes, Clearcover is a legitimate car insurance company. It’s currently available in 16 states. But customer satisfaction varies, according to online review sites like Trustpilot and the BBB.

Does Clearcover have cheap car insurance?

At an average cost of $115 per month, Clearcover offers more affordable prices than the industry average. Clearcover customers save the most, on average, in Nebraska, Missouri, and Texas.

How long has Clearcover insurance been around?

Eight years — Clearcover Insurance has been in business since November 2016.

What states have Clearcover insurance?

Currently, drivers in Alabama, Arizona, Georgia, Illinois, Kentucky, Louisiana, Maryland, Mississippi, Missouri, Nebraska, Oklahoma, Texas, Utah, Virginia, West Virginia, and Wisconsin can get a policy from Clearcover.

Is Clearcover a unicorn?

Yes, Clearcover had a valuation of $1 billion in 2021, making it a unicorn, according to Reuters.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Rating Methodology:

Compare.com’s mission is to help our readers make more informed decisions about their personal finances. Our editorial staff has crafted a proprietary, objective rating formula — the Compare.com Rating — to make it easier for our readers to analyze and compare many of the industry’s most well-known insurers. The score you see referenced in this article is based on several factors, including:

• Cost: How the insurer’s average rates compare to its direct competitors and the industry as a whole. This includes available savings opportunities, such as discounts and other factors.
• Customer satisfaction: How satisfied existing customers are with the service they receive. This includes the insurer’s scores among various third-party studies, such as the J.D. Power U.S. Insurance Shopping and Claims Satisfaction studies, and the National Association of Insurance Commissioners (NAIC) Complaint Index, among others.
• Ease of use: How easy it is for policyholders to utilize their policies. This includes mobile app availability, customer service availability, payment flexibility, and other related factors.
• Availability: The overall scope of the company’s insurance offerings. This includes available coverage types, national footprint, and other related factors.
• Industry reputation: A measure of the insurer’s overall standing within the industry. This includes its AM Best financial strength rating, BBB accreditation, and other related factors.

Sources:

1. National Association of Insurance Commissioners, “Clearcover Ins Co. National Complaint Index Report,” accessed July 24, 2024.
2. AAA Foundation, “Rates of Motor Vehicle Crashes, Injuries and Deaths in Relation to Driver Age, United States, 2014-2015,” accessed July 24, 2024.
3. Insurance Information Institute, “Facts + Statistics: Uninsured motorists,” accessed July 24, 2024.
4. Better Business Bureau, “Clearcover, Inc.,” accessed July 24, 2024.
5. Trustpilot, “Clearcover,” accessed July 24, 2024.
6. Clearsurance, “Clearcover,” accessed July 24, 2024.
7. Reddit, “Clearcover?,” accessed July 24, 2024.
8. Reuters, “EXCLUSIVE Insurance startup Clearcover raises $200 mln from Eldridge, others at $1 bln valuation,” accessed July 24, 2024.