Top 5 Insurtech Companies That Can Save You Money on Insurance

Insurtech (combining "insurance" and digital "technology") is a hot new trend in the insurance world. With insurtech, companies are creating new ways to analyze insurance data, evaluate customers' risk levels, and offer affordable insurance policies -- often from within a mobile app.

Some insurtechs work behind the scenes with major insurers. But others sell insurance directly to consumers. Some of the best insurtech companies even made The Ascent's lists of best insurance companies.

Let's look at a few examples of insurtech companies that offer a wide range of insurance.

1. Lemonade (home, auto, life insurance -- and more)

Lemonade is a prominent consumer-facing insurtech company. It offers homeowners insurance, auto insurance, life insurance, pet insurance, and renters insurance. Lemonade is publicly traded, is a public benefit corporation, and certified B Corp® -- it has an idealistic mission to contribute to the public good, as well as being a for-profit business.

As part of this mission, Lemonade offers the Lemonade Giveback program -- after paying claims and keeping a fixed percentage fee for its profit, Lemonade gives money to charities of the customer's choice. (Life insurance policies are not included in this program.) So far, the Lemonade Giveback has donated a total of over $8.1 million to nonprofits.

Because Lemonade gives leftover money to charity, it has no incentive to deny claims. This might offer customers a fairer deal than they would get from traditional insurance companies.

Lemonade homeowners insurance is available in 23 states, plus the District of Columbia. Not all Lemonade insurance offerings are available in the same states. But if it's available where you live, you might want to consider Lemonade. It made our list of best homeowners insurance companies, with high marks as the best choice for tech-savvy shoppers.

2. Bestow (life insurance)

Bestow is an insurtech company that offers life insurance. It made our list of best life insurance companies as the "best for no medical exam" life insurance. If you want an easy online application process without the hassle of a traditional life insurance medical exam, Bestow could be a great choice.

Here's how Bestow can offer life insurance without a medical exam: The company uses a 100% online application process to ask you a few questions about your age, health, and hobbies. Bestow's underwriting process uses public records data and unique predictive models to evaluate risk with the power of digital technology. For example, Bestow will pull data about your prescription history and credit history, driving records, and prior history applying for insurance. But Bestow uses a soft credit inquiry that won't affect your credit score.

Bestow only offers term life insurance for people aged 18 to 60, with coverage amounts of $100,000 to $1.5 million. The application takes as little as five minutes, and most applicants will get an instant decision and quickly see their life insurance premium price.

3. Trupanion (pet insurance)

With cats and dogs becoming a bigger part of people's families and everyday home life, "pet parents" are more willing than ever before to spend money on keeping their pets healthy and enjoying long, active lives. That means that more pet owners need pet insurance to protect against the high cost of emergency vet bills and other expensive procedures.

The popularity of pet insurance is on the rise. Insurtech companies have started to offer innovative types of pet insurance, with fast claims processing and customizable coverage. One of our picks for best pet insurance companies is Trupanion, an insurtech company that gets high marks for paying veterinary clinics directly. Not every pet insurance company offers this. With Trupanion, you don't have to pay your vet and then wait for reimbursement.

4. VOOM (motorcycle insurance and rideshare insurance)

An interesting trend in auto insurance during the past few years has been the rise of pay-per-mile insurance. With pay-per-mile coverage, you can get a discount on car insurance by driving less. After all, if you're driving fewer miles, you're at lower risk for a crash.

Pay-per-mile insurance is part of the inspiration behind VOOM, a specialized insurtech company that offers motorcycle insurance. Many motorcycle riders only ride their bikes on weekends, or ride less often during colder months. If you want a cheaper way to insure your motorcycle, you might want to consider VOOM.

VOOM also offers specialty auto insurance for rideshare drivers. If you drive for Uber, Lyft, or delivery apps, you might want to get rideshare insurance to protect you from costs that your app's insurance policy doesn't cover.

VOOM's motorcycle insurance is available in 15 states as of Jan. 26, 2024, and its rideshare insurance is available in Arizona and Tennessee.

5. Some car companies (telematics car insurance)

What if you could get car insurance...from your car company? Another way insurtech is changing the insurance experience is by offering auto insurance from inside your car. That's right: A few major auto manufacturers, like Ford, GM, and Tesla, now offer telematics car insurance that works with your connected vehicle technology.

For example, if you drive certain GM vehicles from model year 2016 or later, you can use connected vehicle technology to get GM OnStar Insurance. With your permission, the car will use your driving data to give you a personalized rate on car insurance and reward you for safer driving.

Bottom line

Insurtech is an exciting new field in the world of insurance. The best insurtech companies can offer a range of products, from auto insurance to pet insurance. If you're tech savvy and like the idea of getting insurance online, via mobile app, or from inside your car, insurtech companies can help you save.