Carro, the largest automotive marketplace, has partnered with NTUC Income to launch a new usage-based car insurance.
It will be based on a ‘pay-as-you-drive’ model, which means that users pay according to how much they drive the car.
In other words, the lesser they drive, the lesser they pay.
Starting from tomorrow (28 Nov), all Carro car subscription customers will benefit from insurance savings via subscription credits based on how much they drive.
Carro’s subscription packages include 1,500 kilometres of mileage per month for every standard subscriber.
With this usage-based insurance scheme, subscribers will get charged only for the kilometres driven each month, and the rebates for the un-driven distance will be used to offset the subscription fees for the following month.
Rebates for un-driven distance can be as high as over S$800 per annum.
Drivers that have an existing subscription plan with Carro will automatically benefit from this usage-based insurance offering and their savings will be reflected in the next billing cycle.
Unlike other motor insurance plans that offer a renewal discount to customers based on their previous driving behaviour, this new insurance service uses Vehicular Telematics to assess how much each of their cars is driven in a single month.
This data accurately determines the exact premiums, down to the kilometres driven and charges the customers accordingly for the month.
“We recognise that while drivers own their cars, they may not be using them 24 hours a day, every day. With our usage-based insurance policy, we want to go the extra mile by calculating premiums based on how much they actually drive,” said Aaron Tan, founder and CEO of Carro.
“We are confident that our usage-based insurance will allow many drivers to enjoy savings, convenience and hassle-free experience through a trusted platform. Carro is proud to work with NTUC Income to extend this scheme to the wider pool of Singaporean car owners.”
This article first appeared on Vulcan Post, written by Zafirah Salim.