Launching a new premium credit finance facility for motor insurance depositsfor consumers who pay for their insurance on a monthly basis is’nt easy. But the first step is assessing the market demand in the UK. All motor insurance providers require a significant percentage of the cost of
the insurance policy, on average about 20%which equates to £200- £300 according to industry experts. For many people this amount is not easy to find.
The solution? Dippa premium credit finance, who offer to finance the upfront deposit required when buying motor insurance on a monthly basis. IE chatted with Rob Jones, CEO and CO-FOUNDER of Dippa.
IE: How did you get the idea for Dippa Rob?
RJ: Having worked in the automotive and finance industry for many years I recognised that many of my colleagues and family experienced a barrier to entry when buying motor insurance on a monthly basis. That barrier is the upfront deposit for many consumers. That got me thinking about premium credit solution which has to be the way ahead. That solution is Dippa.
Dippa provides the upfront deposit which is repaid over a 10/11 month period. The first repayment to Dippa is not due for a month and with the motor insurance policy payment not due for a month this creates two major USPs. The consumer pays nothing upfront and pays nothing for a month, it’s a win-win for the consumer.
IE: So is this something of a first to the market?
RJ: Our research demonstrates that Dippa is leading in this regard. nobody is offering anything like it. It’s been a hectic year or so setting things up and we are aiming for FCA regulation status which is being taken care of by our Dippa CO-FOUNDER, Mike Buckworth, a corporate lawyer who specialises in start-up and high growth businesses.
Our research shows that 53% of car drivers use premium credit to finance their motor insurance, so we know the market demand is there and that brands are already used to delivering premium credit finance on their website as an integrated offer. Industry experts suggest that between 60%-70% of consumers would use our product if it were available.
IE: How do you see motor insurance brands benefiting from this new product?
RJ: Our strategy this year is to get motor insurance brands and brokers talking to us regarding partnerships. Dippa adds convenience, affordability and value to the motor insurance provider. This is especially true to brands insuring younger drivers, delivery drivers and taxi’s etc.
If the insurance is high then it follows that the deposit will be as well, so insurance brands can offer Dippa as an add on feature. The logical move would be to have a feature ( button) with ‘ FUND MY DEPOSIT’ on the insurance providers website as part of the checkout process when consumers are buying cover.
The Dippa product is available for consumers who pay for motor insurance on a monthly basis and is capped at £500 to ensure affordability. Our product is also available to a cross section motor related products such as van insurance, motorbike insurance, motor home insurance, motor trade insurance etc. We are now actively seeking partnerships with motor insurance providers and investors who wish to embark on a new era of premium credit finance.
For partnership and investor enquiries please contact:
+44 7749 707619
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