The insurance service is based on a 'pay-as-you-drive' model
The first-of-its-kind insurance service is based on a 'pay-as-you-drive' model where a customer is charged only for the distance driven by them. Under this model, subscribers will be billed only for the number of kilometres driven by them every month. The subscription fees for the following month will be offset using the rebates earned for the un-driven distance from the previous month.
Using Vehicular Telematics, the distance driven is tracked every month-and using this data, the appropriate premiums to be charged are calculated and the customers are accordingly charged. For drivers who have an existing subscription plan with Carro, savings will be reflected in the next billing cycle.
Rebates earned can be as high as $800
Carro's subscription packages include 1,500 kilometres of mileage per month for every standard subscriber, and the rebates earned annually from the un-driven distance can be as high as $800 per annum the company said.
Commenting on the partnership, Aaron Tan, Founder and CEO, Carro, said, "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."
He also added that leveraging proprietary technology to facilitate gains for its customers was in line with the company's commitment to providing a practical car ownership option for customers in Singapore.
"Innovating with leading digital partners has enabled Income to continually reimagine insurance and bring even more value to consumers in Singapore. Our collaboration with Carro has equipped us with invaluable customer insights which empowered customisation of insurance solutions. We believe our customer-centric approach to innovation will allow us to bring even more products to Carro's customers and Singapore car owners at large," said Peter Tay, Chief Digital Officer, Income.