September 5, 2023


Building Financial Resilience with Insurance: The OCHO Mission

To begin thinking about building financial resilience, let's first look at the current situation in the United States of America. The odds are unfairly stacked against the average American, who, according to the Federal Reserve, can't afford an unexpected $400 expense. Rising inflation and biased financial systems mean most people can barely make ends meet, let alone build wealth. 

Frustrated with a country where it seems that only a privileged few come out ahead, OCHO was founded by three passionate Latino, Brown, and Female entrepreneurs, Lulu, Akshay, and Jaime, intent on revolutionizing the system for the better. 

OCHO's core values are to assist hard-working families, immigrants, and those who don't fit the regular mold in the US. We aim to help them build financial strength and the feeling of respect and calmness of knowing their family is secure. 

Our tagline, A FAIR START®  shows what we're all about. It means we're focused on making things fair for everyone right from the beginning. This motto represents our strong dedication to giving everyone equal chances.

This is where OCHO steps in with its unique approach to insurance.

Have you ever gone through the process of obtaining auto insurance? If so, you're likely familiar with how frustrating it can be!

The typical process involves entering your personal information, details about your vehicle, and driving history. This gives you a first quote that's far from accurate. Once you select an insurance company based on this initial quote, you're redirected to the carrier's website to input more information, leading to an updated final price. This final price often jumps considerably from the first quote, leaving you feeling misled and back at square one.

In 2023, OCHO analyzed over 170,000 insurance quotes to find on average:

The final quote for "liability only" coverage increased by $221 from the first quote. In contrast, "comprehensive and collision" quotes rose by an average of $381. 

This lack of transparency and the inability to compare final quotes across various carriers is a big issue for consumers. Pushing them into choices that may be more expensive in the long run.

The OCHO Approach: The Future of Insurance

The insurance system has been rigged in favor of companies to the consumer's disadvantage for too long. At OCHO, we're on a mission to disrupt this unfair situation. We've really thought through all the ways to make auto insurance more fair and accessible for everyone; let's take a look.

Unlike the normal process, where you choose an insurer based on a preliminary quote, OCHO offers a different approach. 

Instead of committing to an insurance company based on initial numbers, OCHO allows you to view all available quotes and provides a platform to provide extra details. Once these details are submitted, OCHO sends them to all partner companies for a second round of quotes. This ensures that the quotes you receive are more accurate.

The OCHO process's game-changing aspect comes in when selecting a company. After choosing an option, OCHO provides a third and final quote. Suppose this final quote significantly increases from the initial quote that you liked. In that case, OCHO allows you to find another final quote from the next best option. This innovative method empowers you to make an informed decision.

The Data-Driven Difference

OCHO doesn't claim to provide a better insurance experience—it backs it up with data. The statistics speak for themselves. 

For "liability only" coverage, OCHO customers experienced an average decrease of $144 from the second to the third quote. Our process is much more accurate, so you won't be shocked when you get your final quote. 

Similarly, for "comprehensive and collision" coverage, customers witnessed an average increase of only $87, a mere 4.2%, from the second to the final quote. 

OCHO helps reduce the usual price increase that often happens with regular insurance quotes.

Making Insurance Accessible for Everyone

One of the biggest obstacles to buying auto insurance is the sizeable down payment many companies require. High down payments make getting insurance, and this dream of financial security seem like an impossible wall to climb. 

One of the standout features of OCHO is its commitment to making insurance more accessible.

The dream of a $0 down payment may seem too good to be true, but OCHO is making it a reality for 50% of its customers. For the next 50%, the average upfront payment is an affordable $62, significantly lower than they would have to pay without OCHO's assistance.

This is made possible by OCHO Pay, a groundbreaking solution that revolutionizes the down payment process. By financing your down payment at 0% APR over 12 equal installments synced to your salary cycle, OCHO Pay ensures that insurance becomes more affordable and manageable. 

A Flexible Payment System Designed for The Real World

The current payment structure of the insurance industry is incredibly rigid. This question brings up a big problem in the insurance industry in serving people and families that live paycheck to paycheck, which is most of America. 

At OCHO, we know how challenging it can be to live paycheck to paycheck. Unexpected costs can come up, and you may need a few more days to make your auto insurance payment. It's a fact - most people need flexibility to make their payments. 

Unfortunately, the auto insurance industry mostly only gives consumers ten days to catch up on a late payment. Why ten days? Ten days is what most states require as a minimum grace period.

At OCHO, most customers want to stay insured and avoid cancellation. Still, they may need just a bit of time for their next paycheck or some other source of money to make their payment. 

We allow our customers to earn more flexibility with each payment they make. For the first payment, if customers make a payment arrangement, including setting up a future payment on their debit card, we allow them to extend their grace period by two additional days. If customers make their first payment, we increase this by four days. 

We are evaluating other ways of adding further flexibility for customers who make their first four payments. Suppose customers show us an early track record of making on-time payments. In that case, we can reward them with more flexibility for subsequent payments.

Insurance as a Foundation for Financial Well-Being

OCHO is focused on insurance because it helps to avoid financial disasters caused by death, driving without insurance, or theft in your home. Those extra unexpected costs that we know can be devastating. 

The insurance industry is ripe for innovation. It's a system that uses data to discriminate against people unfairly, and we're here to change that. We aim to assist you in securing insurance, beginning with auto coverage and expanding to include life and renter's insurance (coming soon!).

The Path Forward: Empowerment and Financial Resilience

OCHO's impact extends beyond car insurance quotes and policies. It embodies a mission to uplift, empower, and strengthen the financial resilience of individuals and families. By revolutionizing the insurance landscape, OCHO is rewriting the rules to help those who have traditionally been left behind. 

In these tough economic times, we're resolute in our commitment to help you and as many others as possible. Picture this: insurance payments that don't break the bank, improving your credit score while building a healthy financial future for your family. This is OCHO's vision and what we're working to create for you. Thank you for joining our journey as we work together to strengthen family legacies.