Free Credit Karma

It creates proposals by analysing driver and vehicle governance information along with credit bureau and insurer information, avoiding the need for manual entry of user information in long form, the firm said. "It is our belief that Americans will exceed car insurances spending by nearly $21 billion a year and believe that the ease and clarity of our members will help them save," said Kenneth Lin, Credit Karma's founding CEO, in a declaration.

It is available in California and Texas, but the corporation is planning to introduce it in other states in the state. More and more "insurtech" start-ups are looking to modernise the industry by taking full benefit of technology to tailor and deliver lower cost solutions.

Established in 2007, Credit Karma is best known for delivering free credit and assisting end customers find items such as consumer credit and credit card solutions. More than 80 million people use the software, making it one of the best financed start-ups in the world. Beyond its flag ship, the free credit scoring tools, it has developed and offers free of charge service such as income taxes.

Crédit Karma had already collected information from the state automobile divisions for an established automobile servicing agency that made car loan advice and assisted in tracking the appraised value of automobiles. Over 8 million passengers have linked their car information to the site since it was started a year ago, the firm said.

"It was a great cost to own a vehicle because automobile insurances are a big cost factor, so having an insurable facility was a logical step to help our members make money," said Rory Joyce, Credit Karma's senior vice president of business development, in a comment. It also allows the user to visualise how changes in credit scores and breaches of policy conditions can enhance policy pay.