Honcho raises almost half its £650,000 target in its first week of crowdfunding

A car insurance app has raised over £300,000 in its first week of crowdfunding, as reported by BQ.

Honcho, a service which makes insurers pay for the right to bid as many times as they like for a single customer, needs £650,000 in order to bring the app to market.

It is designed to reduce insurance costs for motorists by having insurers.

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 to win their custom.

At the time writing, the app had secured £303,000 in support on its CrowdCube page, with over 180 investors.

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.”

Sewell believes the app could “revolutionise the insurance market” as it “benefits both motorists and insurance companies, helping to end the blight of spiralling insurance costs”.

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