New Car Insurance App Gets £300,000 in Crowdfunding

All you need is an idea, a crowd, and some funds…then “BINGO,” you have an inventive new car insurance app that is ready to be launched.

That is what happened to an app called “Honcho” who got £300,000 directly into their bank account after only 1 week of crowdfunding.

£300k? Not Enough!

Is it ready to be launched on Google Play or the App Store? Not quite, as while £300,000 is certainly a nice bit of change to help with starting up a car insurance app, they are not even half way there yet.

£650,000 is the target you see, and once this amount is safely in their bank account, well, they can then launch their car insurance app. Only £350,000 more to go then until Honcho get their Poncho.

So what is so special about Honcho anyway and why does it need crowdfunding? Quite simply, they are trying to revolutionise the car insurance industry, by changing the way that insurance companies interact with customers.

For example, right now on your typical car insurance comparison website, if you find a quote that meets your needs and sign up for a policy then the site gets a commission or fee. Or, if the car insurance company owns the comparison site then it is high fives all round in the meeting room.

However, the difference with Honcho is the tables are turned, so to speak, and it is now the insurance companies that have to pay in order to win your business.

A New Way to Buy Car Insurance? Not Really.

This isn’t really anything new though, as I remember reporting on something similar way back in 2016. I don’t think anything became of that, maybe because they couldn’t raise £650,000 in cash? That is probably why.

Also, let’s not forget that some of the worlds biggest companies such as Facebook have tried to revolutionise the car insurance industry, and…they completely FAILED. It was such an epic FLOP that the words Facebook and car insurance should never be wrote in the same sentence ever again.

This has not deterred the car insurance app “Honcho” and their crowdfunding venture, and if they get all of the cash deposited directly into their bank account then what is going to happen is their app will be ready to launch, just like a rocket, 5,4,3,2…1…we have lift off.

“Give Us a Quid, Mate…”

Once this happens then car insurance companies are supposed to pay the app £1 for the opportunity to bid on customers. A bit like an auction site maybe, kind of like an eBay for car insurance.

This is all meant to give more control to the customer, who can use this to their advantage with all of the companies fighting over them, in order to get cheap car insurance prices.

The Simple Way to Compare Car Insurance

It always amazes me how the most simple things in life have to be made more complicated. Can you get any more simple than this 3 minute form? I don’t think so.

The funny thing is that UK motorists have been using this 3 minute form for years to get really cheap car insurance quotes. No Poncho required.

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