Credit Karma Powers Auto Insurance Discounts With Karma Drive 

Intuit’s financial services platform Credit Karma has introduced a tool called Karma Drive to help people save money on car insurance with a usage-based product. 

“For many of our members, a vehicle is their largest and most costly asset,” Rory Joyce, senior director of product, Credit Karma Auto, said in a press release on Friday (Dec. 18). “Karma Drive delivers on our vision to bring transparency, fairness and accuracy to our members’ auto expenses with an easy opportunity to potentially save money on their auto insurance. Plus, it might even help them become more aware of ways to be a safer driver.”

Karma Drive, which is being launched in collaboration with Zendrive and Progressive, bases the price of insurance on how much a person drives. Credit Karma members can access a 30-day trial from the smartphone app. Users will get continuous, real-time feedback about their driving. When the trial is over, users will be told whether they qualify for a discount.

There is no app to download or separate device required to try out the program. Members’ driving will be tracked via their smartphones. With Karma Drive, members can see the savings before committing.

Progressive rolled out the Snapshot Road Test app, a new tool that gives people an idea of how much they would save if they switched carriers. Credit Karma has more than 110 million users in the U.S., Canada and the U.K.

Karma Drive said the company aims to help people develop safer driving habits and offers rewards for improved behavior. The insurance product is available in 39 states, with plans to add two more in 2021.

“Progressive continues to innovate and make it easier for good drivers to save on auto insurance,” said Jim Haas, usage-based insurance business leader for Progressive. 

Intuit closed its $8.1 billion acquisition deal with Credit Karma earlier this month. The deal got the attention of antitrust regulators due to Intuit’s ownership of Turbotax. However, the U.S. Justice Department approved the union once Credit Karma agreed to sell off its tax unit.