Car insurance app attracts over £300,000 in first week of crowdfunding

Car insurance app attracts over £300,000 in first week of crowdfunding

A service designed to reduce insurance costs for motorists has secured over £303,000 in just seven days of setting up a crowdfunding page on CrowdCube.

In a bid to compete with price comparison websites (PCWs), whose prices are usually inflated, honcho will create the UK’s first ‘reverse auction’ marketplace for car insurance.

Honcho’s crowdfunding campaign aims to secure £650,000 to bring the app to market and has raised almost half of this through funds from over 180 investors.

Unlike price comparison websites, which charge insurers commissions, insurers pay honcho just £1 for the right to bid as many times as they like for a single customer, allowing them to reduce premiums for drivers and incentivising them to do so in order to win their custom.

Gavin Sewell, CEO at honcho, said: “We are thrilled to have secured almost half of the investment needed to launch the honcho app within just the first seven days of the campaign being launched. The crowdfunding page is live until the 24th December, so we are confident we should be able to reach our target of £650,000.

“We are delighted to be able to offer such a consumer-friendly insurance service within the UK. The model is one of a kind and will be revolutionary for drivers, in particular young motorists who find securing a competitive deal incredibly challenging.”

honcho will act as a ‘matchmaker’ between customers and insurers, initially for car insurance, but ultimately across a range of other insurance products and markets.

Sewell continues: “We believe honcho can revolutionise the insurance market. It benefits both motorists and insurance companies, helping to end the blight of spiralling insurance costs which are causing misery for many.”

honcho is the first online reverse auction marketplace for financial services, and the team hopes it will revolutionise the way people buy products and services, saving them time and money.

honcho is due to launch into the car insurance market in 2018.