---
title: "Clearcover Insurance Review [Updated 2026]"
description: "Clearcover is a Chicago-based insurtech company that offers auto insurance in 19 states. Founded in 2016, the company uses technology and AI to streamline the insurance experience and reduce costs for customers."
canonical: "https://www.coveragecat.com/reviews/clearcover"
last-updated: "2026-08-13"
---

# Is Clearcover Insurance Legit?

*Yes, Clearcover is a legitimate insurance company. Founded in 2016, the company operates as a licensed insurer in 19 states and holds a financial stability rating from Demotech [(Clearcover, "About Us", 2026)](https://www.clearcover.com/about). However, the company has faced challenges with customer complaints and policy renewals, which potential buyers should consider before purchasing a policy.*

1. [Introduction to Clearcover Insurance](#introduction)
2. [What Kind of Insurance Does Clearcover Offer?](#types-of-insurance)
3. [How Does Clearcover Insurance Work?](#how-it-works)
4. [Pricing and Discounts](#pricing)
5. [Pros and Cons of Clearcover Insurance](#pros-cons)
6. [Ratings and Customer Feedback](#ratings)
7. [Claims Process and Customer Service](#claims-support)
8. [Financial Strength](#financial-strength)
9. [Frequently Asked Questions](#faq)

## <a id="introduction"></a>Introduction to Clearcover Insurance

Clearcover launched in 2016 with headquarters in Chicago, Illinois. CEO and co-founder Kyle Nakatsuji previously worked as a venture capitalist at American Family Ventures before launching the insurtech startup [Ibid.](https://www.clearcover.com/about).

The company raised more than $560 million in funding to date [(Clearcover, "Press", 2026)](https://clearcover.com/press/). It reached unicorn status with a $1 billion valuation in 2021, joining the ranks of tech-focused insurance disruptors [(Crunchbase, "Clearcover - Crunchbase Company Profile & Funding", 2025)](https://www.crunchbase.com/organization/clearcover).

Clearcover represents a new generation of insurtech companies. These startups use technology and artificial intelligence to reduce costs and pass savings to customers. The company's API-first approach enables affordable rates by reducing overhead costs associated with traditional insurance companies.

Rather than maintaining physical offices or traditional agent networks, Clearcover primarily sells policies through its mobile app and website. In 2025, the company began operating a reciprocal exchange, Clearcover Inter-Insurance Exchange (CIX), expanding its business model to serve additional market segments [(Clearcover, "Press", 2026)](https://clearcover.com/press/). In January 2025, the company expanded its services by launching Clearcover General Agency (CGA) to serve the non-standard auto insurance market in Texas [(Business Wire, "Clearcover Launches Non-Standard Auto Insurance", 2025)](https://www.businesswire.com/news/home/20250115000001/en/).

## <a id="types-of-insurance"></a>What Kind of Insurance Does Clearcover Offer?

Clearcover specializes exclusively in [auto insurance](https://www.coveragecat.com/insurance-typesinsurance-types/car-insurance). The company does not offer homeowners, renters, or [umbrella insurance](https://www.coveragecat.com/insurance-typesinsurance-types/umbrella-insurance) products.

### Coverage Options

The company provides standard auto insurance coverages [(Clearcover, "Coverage Options", 2026)](https://www.clearcover.com/coverage). These include liability, collision, comprehensive, uninsured/underinsured motorist, and medical payments.

**Standard coverages include:**

- **Bodily Injury Liability**: Covers medical expenses for others if you cause an accident
- **Property Damage Liability**: Pays for damage to others' vehicles or property
- **[Collision Coverage](https://www.coveragecat.com/insurance-typesinsurance-types/collision-coverage)**: Repairs or replaces your vehicle after an accident
- **[Comprehensive Coverage](https://www.coveragecat.com/insurance-typesinsurance-types/comprehensive-coverage)**: Covers non-collision damage like theft, vandalism, or weather
- **Uninsured/Underinsured Motorist**: Protects you if hit by an uninsured driver
- **Medical Payments/Personal Injury Protection**: Covers your medical expenses after an accident

**Optional add-on coverages:**

- **Alternate Transportation Coverage**: Clearcover provides a cash payout to use for whatever transportation is best for you instead of limiting you to rental cars
- **Roadside Assistance**: Covers the cost of sending a service technician when you need help on the road
- **Rideshare Coverage**: Clearcover offers rideshare coverage for drivers who work for services like Uber and Lyft

The rideshare endorsement does not extend coverage to delivery of food or items. Drivers for DoorDash or Instacart need separate coverage [(Clearcover, "Rideshare Coverage FAQ", 2026)](https://www.clearcover.com/rideshare).

### Notable Coverage Limitations

 Gap insurance covers the difference between what you owe on a vehicle and its actual cash value if totaled. Accident forgiveness prevents rate increases after your first at-fault accident.

### State Availability

Clearcover car insurance is available in 19 states: AL, AZ, GA, IL, IN, KY, LA, MD, MS, MO, NE, OH, OK, PA, TX, UT, VA, WV and WI [(Clearcover, "State Availability", 2026)](https://www.clearcover.com/states).

The company recently stopped offering coverage to new customers in California and Pennsylvania. This indicates Clearcover may be pulling back from certain markets, though existing policyholders can maintain their coverage.

## <a id="how-it-works"></a>How Does Clearcover Insurance Work?

Clearcover operates as a direct-to-consumer, digital-first insurance company. The entire customer experience centers on the company's mobile app and website.

### Getting a Quote

Clearcover uses InsurTech—a series of technologies, including software and proprietary algorithms—to better underwrite and price policies [(Clearcover, "How It Works", 2026)](https://www.clearcover.com/how-it-works).

To obtain a quote, customers visit the Clearcover website or download the mobile app. The process collects basic information about drivers, vehicles, and desired coverage. Clearcover provides free, no-obligation quotes in minutes.

### Purchasing and Managing a Policy

Clearcover sells policies on a six-month basis. This differs from many insurers that offer 12-month terms. The company reviews and re-rates policies after six months.

After purchase, customers manage their policies primarily through the Clearcover mobile app [(Google Play, "Clearcover Car Insurance - Apps on Google Play", 2025)](https://play.google.com/store/apps/details?id=com.clearcover.app&hl=en_US). The app includes digital claims processing, roadside assistance, glass repair scheduling, and offline ID card access. The company provides user-friendly online tools but does not offer home or renters insurance.

### Technology and AI

The company relies on AI technology to manage its claims process [(Clearcover, "AI Claims Processing", 2024)](https://www.clearcover.com/claims). This helps Clearcover pay out eligible claims in minutes. In 2024, the company launched a generative AI tool designed to further digitize statement collection, significantly streamlining the insurance claims process and customer experience [(PR Newswire, "Clearcover Launches Generative AI Insurance Tool to Expedite Claims Processing", 2024)](https://www.prnewswire.com/news-releases/clearcover-launches-generative-ai-insurance-tool-to-expedite-claims-processing-and-improve-customer-experience-302094818.html).

The company's proprietary ClearAI technology uses large language models to guide conversational experiences immediately after First Notice of Loss. This innovation enables Clearcover to issue payment on eligible claims in as little as 30 minutes, with the company's record at seven minutes [(Built In, "25 AI Insurance Examples to Know", 2026)](https://builtin.com/artificial-intelligence/ai-insurance).

Clearcover also partnered with Claim Genius for AI-driven damage assessment to improve underwriting and prevent fraud [(Clearcover, "Press", 2026)](https://clearcover.com/press/). This partnership enhances the company's ability to assess vehicle damage accurately and detect fraudulent claims.

## <a id="pricing"></a>Pricing and Discounts

### Average Costs

The average annual rate from Clearcover is $1,994 for full coverage—around 23 percent below the national average. This makes it one of the more affordable options for drivers seeking comprehensive coverage. Personal rates depend on where you live, the type of car you drive, your age, and your driving history.

### Discounts

Clearcover bundles discounts into quotes automatically. The website states that costs are lower for cars with certain vehicle safety features and drivers with clean driving records [(Clearcover, "Discounts", 2026)](https://www.clearcover.com/discounts). Discounts apply for drivers who pay premiums in full and agree to receive documents electronically.

**Available discounts include:**

- **Safe Driving**: Clean record with no accidents or tickets
- **Vehicle Safety Features**: Cars with automatic braking and other safety technology
- **Paid-in-Full**: Pay your six-month premium upfront
- **Multi-Vehicle**: Insure multiple vehicles
- **Military Discount**: Active, training, and retired military members qualify for a 15 percent discount, with Louisiana offering 25 percent
- **Electronic Documents**: Receive policy documents via email
- **Continuous Insurance**: Maintain coverage without lapses
- **Driving Experience**: Licensed for a certain number of years

Clearcover automatically builds discounts into your price. You don't need to ask about them.

### Payment Options

Clearcover sells six-month policies. Customers can pay monthly or in full. However, some customers report that Clearcover changed their payment terms mid-policy, requiring full payment upfront instead of monthly installments [(Trustpilot, "Clearcover Reviews", 2026)](https://www.trustpilot.com/review/clearcover.com).

## <a id="pros-cons"></a>Pros and Cons of Clearcover Insurance

| Pros | Cons |
|------|------|
| Competitive pricing below national average | High complaint index (11.46, over 11x expected) |
| Fast digital claims process via mobile app | Limited to 19 states |
| Highly-rated mobile app (4.7 stars on iOS, 4.4 on Android) | Only sells auto insurance (no bundling discounts) |
| Discounts automatically applied to quotes | Six-month policy terms only |
| Unique alternate transportation coverage with cash payout | Reports of unexpected premium increases |
| Rideshare coverage available | Issues with policy cancellations and non-renewals |
| AI-powered claims processing with 30-minute payout capability | No AM Best rating, only Demotech |
| Featured on Forbes' 2025 America's Best Insurance Companies | Digital-only experience (no local agents) |
| | No gap insurance or accident forgiveness |
| | Q2 2025 premiums declined 18% year-over-year |

## <a id="ratings"></a>Ratings and Customer Feedback

### Third-Party Ratings

| Source | Rating | Details |
|--------|--------|---------|
| **Demotech** | A (Exceptional) | Financial stability rating [(Demotech, "CLEARCOVER INSURANCE COMPANY - Demotech", 2026)](https://www.demotech.com/company/16524/) |
| **AM Best** | Not Rated | No financial strength rating available [(Clearcover, "Clearcover Demotech Rating", 2025)](https://support.clearcover.com/hc/en-us/articles/22882882196247-Clearcover-Demotech-Rating) |
| **Better Business Bureau** | A+ Rating | 2.31 stars from 70 customer reviews [(BBB, "Clearcover", 2026)](https://www.bbb.org/us/il/chicago/profile/auto-insurance/clearcover-inc-0654-90012949) |
| **NAIC Complaint Index** | 11.46 | Numbers higher than 1 indicate more complaints relative to other insurers [(NAIC, "Complaint Index Data", 2024)](https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=16524&REALM=PROD&COCODE=16524&REALM=PROD) |
| **J.D. Power** | Not Rated | Not included in 2025 U.S. Auto Insurance or 2024 U.S. Auto Claims Satisfaction studies |
| **Forbes** | Featured | Named to Forbes' 2025 America's Best Insurance Companies [(Clearcover, "Press", 2026)](https://clearcover.com/press/) |
| **CNBC** | Featured | Listed in CNBC's 2024 World's Top Insurtech Companies [Ibid.](https://clearcover.com/press/) |

### Aggregated Customer Reviews

### Customer Reviews Summary

| Source | Rating | Volume | Key Takeaway |
|--------|--------|---------|--------------|
| [**Trustpilot**](https://www.trustpilot.com/review/clearcover.com) | Mixed | 337 reviews | Customer experience varies widely. Some praise the easy-to-use mobile app, while others report unexpected price hikes and unpleasant customer support |
| [**Google Play**](https://play.google.com/store/apps/details?id=com.clearcover.app&hl=en_US) | 4.4 ★ | ~5,000 reviews | Many reviews mention the app is user-friendly and easy to navigate, with customers enjoying features like live chat and roadside assistance |
| [**Apple App Store**](https://apps.apple.com/us/app/clearcover-car-insurance/id1267703900) | 4.7 ★ | ~14,200 reviews | High ratings, though most reviews focus on insurance offerings rather than app functionality |
| [**BBB**](https://www.bbb.org/us/il/chicago/profile/auto-insurance/clearcover-inc-0654-90012949) | 2.31 ★ | 70 reviews | Many complaints about policies terminated without warning or denied renewals, plus challenges with claims payouts |

### Common Complaints

The NAIC gave Clearcover a complaint index score of 11.46, with 29 complaints reported [(NAIC, "Complaint Index Data", 2024)](https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=16524&REALM=PROD&COCODE=16524&REALM=PROD). 

**Frequent customer concerns include:**

- Premium increases of 70% or more at renewal without notice
- Changed from monthly billing to full upfront premium without notice
- Policy cancellations without adequate explanation
- Difficulty reaching customer service representatives
- Long wait times for claims processing
- Unexpected non-renewals after filing claims

### Real Customer Reviews

<div class="grid customer-review">
  <div class="column">
    <p>5 ★</p>
    <p><b>Jennifer Catanzaro, 2023</b></p>
    <p><a href="https://www.trustpilot.com/review/clearcover.com"><span class="text-muted">via Trustpilot</span></a></p>
  </div>
  <div class="column">
    <p>"I was hesitant to go with Clearcover because they are online and no local offices. I had been with Allstate, State Farm and others that were not well known but I can say that Clearcover has been the best, by far, to work with. I had an accident and the claim was done through their app on my phone. It was fast and easy to process." [(Trustpilot, "Clearcover Reviews", 2023)](https://www.trustpilot.com/review/clearcover.com)</p>
  </div>
</div>

<div class="grid customer-review">
  <div class="column">
    <p>3 ★</p>
    <p><b>Casey, 2024</b></p>
    <p><a href="https://www.trustpilot.com/review/clearcover.com"><span class="text-muted">via Trustpilot</span></a></p>
  </div>
  <div class="column">
    <p>"I went with Clearcover because they were the most cost effective, but this changed things. I shopped around and found similar coverage from one of the big name carriers for a cheaper price. I've never had issues with Clearcover's customer support, but for being a 'value product' their billing practices seem like they try to take advantage of customers' loyalty once they're members by steeply raising rates." [Ibid.](https://www.trustpilot.com/review/clearcover.com)</p>
  </div>
</div>

<div class="grid customer-review">
  <div class="column">
    <p>2 ★</p>
    <p><b>Abigail L., 2025</b></p>
    <p><a href="https://www.bbb.org/us/il/chicago/profile/auto-insurance/clearcover-inc-0654-90012949/customer-reviews"><span class="text-muted">via Better Business Bureau</span></a></p>
  </div>
  <div class="column">
    <p>"They cancelled me because, according to them, I hadn't returned a form verifying the annual mileage of the insured vehicles. I requested the form be resent and was told they could/would not do that. I was told if I could find the form and send it in my insurance would be maintained." [(BBB, "Clearcover Customer Reviews", 2026)](https://www.bbb.org/us/il/chicago/profile/auto-insurance/clearcover-inc-0654-90012949/customer-reviews)</p>
  </div>
</div>

<div class="grid customer-review">
  <div class="column">
    <p>1 ★</p>
    <p><b>Eric, 2025</b></p>
    <p><a href="https://www.trustpilot.com/review/clearcover.com"><span class="text-muted">via Trustpilot</span></a></p>
  </div>
  <div class="column">
    <p>"Suddenly increased premium by 70% without cause and changed from monthly billing to full upfront premium without ANY NOTICE. This is a scam, and now I can't even cancel my policy as their chat has disabled access to representatives and trying to call just leaves you on hold for an hour only to be disconnected." [(Trustpilot, "Clearcover Reviews", 2026)](https://www.trustpilot.com/review/clearcover.com)</p>
  </div>
</div>

## <a id="claims-support"></a>Claims Process and Customer Service

### Filing a Claim

Clearcover's tech-driven approach allows the company to pay eligible claims in minutes rather than weeks [(Clearcover, "Claims Process", 2026)](https://www.clearcover.com/claims). Most claims are paid in less than a week. The company advertises it can issue payment for eligible claims in as little as 30 minutes using its proprietary ClearAI technology, with a record payout time of seven minutes [(PR Newswire, "Clearcover Launches Generative AI Insurance Tool to Expedite Claims Processing", 2024)](https://www.prnewswire.com/news-releases/clearcover-launches-generative-ai-insurance-tool-to-expedite-claims-processing-and-improve-customer-experience-302094818.html), though some customer reviews mention claims took much longer or were denied.

**To file a claim:**

1. File through the Clearcover app—answer questions, snap pictures, and track your claim's progress
2. Call (855) 444-1875 to speak with a claims representative
3. Visit the Clearcover website to file online

You can follow your claim every step of the way. The app provides real-time updates on claim status.

### Customer Service

Clearcover's customer support team is available Monday to Friday from 8:00 AM to 7:00 PM CT [(Clearcover, "Contact Us", 2026)](https://www.clearcover.com/contact). Weekend hours run Saturday and Sunday between 8:00 AM to 5:00 PM CT.

**Contact methods:**

- **Phone**: (855) 444-1875
- **Email**: help@clearcover.com or support@clearcover.com
- **Mobile App**: Chat feature with Customer Advocates
- **Mailing Address**: PO Box A3386, Chicago, IL 60609

Clearcover's Help Center, chat, and Customer Advocates are available through the app. The mobile app includes live chat support, allowing customers to connect directly with representatives for assistance [(Google Play, "Clearcover Car Insurance - Apps on Google Play", 2025)](https://play.google.com/store/apps/details?id=com.clearcover.app&hl=en_US).

### Cancellation

You can cancel your Clearcover insurance policy any time through the app. Alternatively, work with a Customer Advocate over the phone during business hours [(Clearcover, "Policy Cancellation", 2026)](https://www.clearcover.com/faq). Clearcover recommends canceling before your current policy term ends.

## <a id="financial-strength"></a>Financial Strength

Clearcover holds a financial stability rating of A (Exceptional) from Demotech [(Demotech, "CLEARCOVER INSURANCE COMPANY - Demotech", 2026)](https://www.demotech.com/company/16524/). The company is not currently rated by AM Best [(Clearcover, "Clearcover Demotech Rating", 2025)](https://support.clearcover.com/hc/en-us/articles/22882882196247-Clearcover-Demotech-Rating).

The company is financially stable according to Demotech, an independent financial agency that evaluates insurance companies. Clearcover has been accredited by the Better Business Bureau since 2017 [(BBB, "Clearcover", 2026)](https://www.bbb.org/us/il/chicago/profile/auto-insurance/clearcover-inc-0654-90012949).

The company reached unicorn status with a valuation of $1 billion as of April 13, 2021 [(Crunchbase, "Clearcover - Crunchbase Company Profile & Funding", 2025)](https://www.crunchbase.com/organization/clearcover). Total funding raised to date exceeds $560 million [(Clearcover, "Press", 2026)](https://clearcover.com/press/).

## <a id="faq"></a>Frequently Asked Questions

### Is Clearcover Insurance Legit?

Yes, Clearcover is a legitimate insurance company. Clearcover has high ratings for financial strength from Demotech and has been accredited by the Better Business Bureau since 2017 [(BBB, "Clearcover", 2026)](https://www.bbb.org/us/il/chicago/profile/auto-insurance/clearcover-inc-0654-90012949). The company is licensed to sell auto insurance in 19 states.

### How Does Clearcover Make Money?

Clearcover generates revenue by collecting premiums from policyholders. The company's API-first approach enables customers to have great insurance at affordable rates by reducing operational costs compared to traditional insurers [(Clearcover, "How It Works", 2026)](https://www.clearcover.com/how-it-works). Clearcover also recently expanded into non-standard auto insurance through its Clearcover General Agency subsidiary [(Business Wire, "Clearcover Launches Non-Standard Auto Insurance", 2025)](https://www.businesswire.com/news/home/20250115000001/en/). In 2025, the company began operating a reciprocal exchange, Clearcover Inter-Insurance Exchange (CIX), which provides an additional revenue stream and business model for serving different market segments [(Clearcover, "Press", 2026)](https://clearcover.com/press/).

### Is Clearcover Worth the Cost?

On average, Clearcover costs $1,994 per year for full coverage—around 23 percent below the national average. For tech-savvy drivers comfortable with a digital-only experience who prioritize low rates, Clearcover offers value. The company has been featured on Forbes' 2025 America's Best Insurance Companies and CNBC's 2024 World's Top Insurtech Companies [Ibid.](https://clearcover.com/press/). However, the company has more complaints than companies of similar size [(NAIC, "Complaint Index Data", 2024)](https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=16524&REALM=PROD&COCODE=16524&REALM=PROD), which potential customers should weigh against the cost savings.

### Does Clearcover Offer Homeowners or Renters Insurance?

No. Clearcover only sells car insurance [(Clearcover, "Coverage Options", 2026)](https://www.clearcover.com/coverage). If you need a homeowners or renters policy, you'll have to find another provider, which means you can't take advantage of bundling discounts.

For [homeowners insurance](https://www.coveragecat.com/insurance-typesinsurance-types/homeowners-insurance) or [renters insurance](https://www.coveragecat.com/insurance-typesinsurance-types/renters-insurance), you'll need to work with a different carrier.

### What States Does Clearcover Operate In?

Clearcover is available in 19 states: AL, AZ, GA, IL, IN, KY, LA, MD, MS, MO, NE, OH, OK, PA, TX, UT, VA, WV and WI [(Ibid., "State Availability", 2026)](https://www.clearcover.com/states). Clearcover recently stopped offering coverage to new customers in California, though existing policyholders can maintain their coverage.

### Can I Get an Umbrella Policy from Clearcover?

No. Clearcover does not offer [umbrella insurance](https://www.coveragecat.com/insurance-typesinsurance-types/umbrella-insurance). If you need additional liability protection beyond your auto policy limits, you'll need to purchase umbrella coverage from another insurer or through an independent broker like Coverage Cat.

### What Is Clearcover Insurance Rating?

Clearcover holds an A (Exceptional) financial stability rating from Demotech [(Demotech, "CLEARCOVER INSURANCE COMPANY - Demotech", 2026)](https://www.demotech.com/company/16524/). The company does not have an AM Best rating. The company received an A+ rating from the Better Business Bureau but has a high NAIC complaint index of 11.46, indicating more complaints than similarly-sized insurers.

### Should I Buy Clearcover Insurance?

Clearcover may be right for you if you:
- Want below-average auto insurance rates
- Are comfortable with a digital-only, app-based experience
- Live in one of the 19 states where Clearcover operates
- Have a clean driving record
- Don't mind six-month policy terms
- Value fast claims processing through AI technology

However, you should consider alternatives if you:
- Prefer working with local agents
- Want to bundle auto with home or renters insurance
- Have concerns about the company's high complaint index
- Need insurance for commercial vehicles or non-standard situations
- Want gap insurance or accident forgiveness coverage

Clearcover offers low rates and quick digital claims. However, it struggles with inconsistent approvals and limited state availability. This makes it most suitable for tech-savvy drivers comfortable managing policies through a mobile app.

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