Intuit to Acquire Zendrive to Expand Usage-Based Auto Insurance

Intuit plans to acquire technology and add employees from Zendrive to accelerate the development and adoption of Karma Drive, a telematics-powered, usage-based auto insurance product offered by Intuit business unit Credit Karma.

The transaction is expected to close in the fourth quarter of fiscal year 2024 and certain Zendrive employees — including CEO Dennis Ellis and Co-founder and Chief Technology Officer Pankaj Risbood — will join Credit Karma, the companies said in a Thursday (June 13) press release.

“With Zendrive’s technology and experience, we strive to make usage-based auto insurance more accessible than ever and bring more transparency, fairness and accuracy to consumer auto insurance pricing, while providing insight into their driving behaviors,” Joe Kauffman, president of Credit Karma, said in the release.

Because Karma Drive is powered by telematics, the product gives carriers better visibility — with member consent — into members’ driving behaviors, according to the release.

Credit Karma members can choose to participate in a trial of this telematics-powered offering — without first having to purchase a policy — so that they can get real-time feedback on their driving and can view potential personalized discount offers based on their driving habits before purchasing a policy, the release said.

Credit Karma has partnered with Zendrive since it launched Karma Drive more than three years ago, according to the release. Since then, Karma Drive has enrolled more than 6 million members.

“Zendrive’s mission is to make roads safer with data and analytics, and we pride ourselves on delivering experiences that help create awareness for safe driving habits,” Ellis said in the release. “Intuit’s customer-obsessed culture is a perfect match for our team. Together we will democratize access to fair insurance for all Americans based on their driving habits, not their financial situation.”

Credit Karma launched Karma Drive in December 2023, saying that a vehicle is many members’ most costly asset and that usage-based car insurance may help them save money.

Launched in collaboration with Zendrive, this offering bases the price of insurance on how much a person drives and provides the member with continuous, real-time feedback about their driving. Credit Karma said at the time that the offering also provides members with greater transparency, fairness and accuracy about their auto insurance costs.