Cred expands into insurance, leveraging Cred Garage to offer motor policies

With discounts for high credit scores, Cred partners with major insurers to launch motor insurance offering.

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| November 4, 2024 , 9:38 am
Cred Garage, a feature that provides users with insights on vehicle spends, pending traffic violations, insurance renewal dates, and breakdown assistance, will now support distribution, marking Cred's first venture into the insurance sector.
Cred Garage, a feature that provides users with insights on vehicle spends, pending traffic violations, insurance renewal dates, and breakdown assistance, will now support distribution, marking Cred's first venture into the insurance sector.

Fintech giant Cred, known for its financial services focused on rewards for credit card payments, has now expanded into insurance, targeting motor policies through its platform Cred Garage, according to reports.

This latest offering sees Cred leveraging its vehicle management platform to distribute insurance products, initially focusing on motor insurance with added perks for customers who maintain high credit scores.

Cred Garage, a feature that provides users with insights on vehicle spends, pending traffic violations, insurance renewal dates, and breakdown assistance, will now support distribution, marking Cred’s first venture into the insurance sector.

With approximately 7 million registered vehicles and 4.4 million users on Cred Garage, the platform presents a ready customer base for Cred’s insurance offering. The company holds a corporate agency license from the Insurance Regulatory and Development Authority (IRDAI), allowing it to partner with Zurich Kotak General Insurance, Go Digit General Insurance, and ICICI Lombard to extend motor insurance products to its members.

While Cred Garage’s vehicle management services remain free for users, Cred aims to generate revenue through commissions from partnered insurers.

Cred currently serves 13 million monthly users, with around 11 million engaging actively, underscoring the potential of Cred Garage to drive user engagement and further diversify Cred’s revenue streams.

Cred’s foray into insurance distribution is the latest addition to its suite of financial services, which already includes credit card bill payments, Unified Payments Interface (UPI), and wealth management.

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