Branch, the Ohio-headquartered insurance startup that pioneered bundling home and auto insurance online in seconds, launched, Community Pledge, a new program to help customers continue to lower the cost of their insurance. Community Pledge, which will first roll out in Ohio, allows Branch customers to request a “vouch” from other Branch customers in exchange for up to 5% off their insurance.
“The concept behind Community Pledge is simple: if a Branch customer is willing to vouch that you’re a trusted member of the community, we’ll reduce your insurance price by 1%,” said Branch CEO and co-founder, Steve Lekas. “We founded Branch out of the deeply held belief that by leveraging the power of community, we could make insurance better and more affordable for everyone.” fintech news
According to the FBI, the total cost of insurance fraud (non-health insurance) is estimated to be more than $40 billion per year, costing the average U.S. family between $400 and $700 per year in the form of increased premiums.
Branch sees the Community Pledge program as a way to help reduce the risk of insurance fraud. By equipping users with the technology needed to foster a more trusted community of users, Branch expects to reduce the incidence of fraud while passing the savings along to customers.
How it Works
Community Pledge becomes available to customers as soon as they buy a Branch policy (provided the program is available in their state). Once a user downloads the Branch app, they can sync their contacts and identify any friends who are Branch customers. From there, the user sends a “vouch request” to their contact using the app. The contact will then receive a short email from Branch asking the user to vouch for their friend with a simple click. Once vouched for, the user will see a 1% discount off their insurance.
Branch’s Commitment to Creating a Community of Savings
The Community Pledge is the latest in a series of innovative programs designed to leverage the power of community to improve insurance and make it more affordable.
- SafetyNest rolled out in October 2019 to help uninsured (or underinsured) people who have experienced some kind of incident that has put their financial condition in jeopardy.
- My Community Discount will begin in early 2020, to help customers invite their friends to Branch in exchange for Amazon gift cards and monthly savings.
To see how much you can save by bundling your home and auto insurance, simply go to ourbranch.com and enter your name and address.
