Carro, Singapore’s online automotive marketplace, has announced the launch of the city-state’s first artificial intelligence (AI)-driven pay-per-kilometer insurance and maintenance plan called Covered.
Covered is a first of its kind in Singapore and is available for all types of cars, including electric vehicles. It allows drivers to tailor their insurance premiums and maintenance coverage according to their lifestyles.
The insurance product is distributed by Genie Financial Services, a subsidiary of Carro, and underwritten by NTUC Income.
Covered provides coverage for all licensed drivers, regardless of age and driving experience, at $0 excess (only for Third Party and Own Damage excess when repairing at an Income approved workshop).
Younger drivers no longer need to commit to a high excess as per most traditional auto insurances, which formulate excess based on age and driving experience.
While Covered does not take a driver’s NCD into account, the original NCD amount will not be affected if they switch back from Covered to any motor insurance from NTUC Income.
Carro CEO and founder Aaron Tan said digitalisation has turned the auto industry into a whole new ball game and Carro was one of the first to embrace it through its investments into digital technologies.
With Covered, Tan hopes his company would be able to provide new generations of car owners with a single touchpoint to resolve their car concerns.
“Having the convenience of UBI and maintenance in one neat, personalized package helps drivers save more on both sides and further streamlines the management of car ownership,” Tan added.
Carro previously formed strategic partnerships with insurance providers such as NTUC Income and Mitsui Sumitomo Insurance Group Holdings (MSIG) to co-develop new usage-based insurance (UBI) products that drove digital transformation in the region’s auto industry.
In late 2019, Carro and NTUC Income launched Singapore’s first pay-as-you-drive car insurance exclusively for Carro’s car subscription program, CARRO LEAP. Subsequently, December 2020 saw Carro and MSIG unveil Southeast Asia’s first behavior and usage-based car insurance for drivers in the region.