Singapore-based insurer NTUC Income and automotive marketplace Carro have partnered to launch a usage-based motor insurance policy.
The product, which will be available beginning November 28, will use a ‘pay-as-you-drive’ model, which calculates premiums based on the distance the vehicle is driven. It uses vehicular telematics technology to track the distance driven each month.
According to Carro, in cases where there are leftover ‘un-driven’ kilometres from the previous month’s subscription, the rebates will be used to offset the fees for the following month. Carro’s subscription packages include 1,500 kilometres per month, and rebates earned annually from un-driven distances can reach SG$800, it said.
The subscription package includes insurance, road tax, regular vehicle maintenance, and 24-hour road assistance.
“We are confident that our usage-based insurance will allow many drivers to enjoy savings, convenience and hassle-free experience through a trusted platform,” said Aaron Tan, founder and CEO of Carro. “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 Insurance Business Asia, written by Gabriel Olano.