Chicago auto insurance startup ForeverCar just landed a new round of funding to help car buyers get an extended warranty online.
ForeverCar announced Tuesday that it has raised $15 million in new equity and debt funding. The round includes $3 million in equity from CMFG Ventures—the venture capital arm of CUNA Mutual Group—along with Method Capital, SAP Fieldglass Founder Jai Shekhawat, and other investors. The round also included $12 million in debt financing.
The new round of capital brings ForeverCar’s total funding to $25 million since it was founded in 2012.
Insurers like Liberty Mutual and CUNA Mutual Group use ForeverCar’s platform to sell extended warranties to car owners whose vehicles are not covered by the manufacturer warranty. ForeverCar’s platform, which operates across all fifty states, allows customers to select a plan, and guides them through the claims process if they get into an accident. The startup can help customers get a rental car, find a repair shop, and check repair progress online.
Once the repairs are done, customers simply pay their deductible at the shop.
“Our talented team now has the tools needed to accelerate growth and drive consumer adoption of our solution by more than 200 million car owners who have an expired manufacturer warranty,” Mark Hodes, founder and CEO of ForeverCar, said in a news release.