Carro launches AI-driven insurance and maintenance plan for drivers

Singapore-based car marketplace Carro announced the launch of Covered, its AI-driven insurance and maintenance plan.

The Carro team / Photo credit: Carro

Under the new scheme, customers can pay an annual coverage fee of S$150 (US$111), which will be billed to them at the end of each month. This will replace the lump sum fee that customers often have to pay for standard auto insurance.

The insurance plan will provide coverage for all licensed drivers, regardless of age and driving experience, and charges no excess fees when drivers make a claim for an accident.

“The usage-based insurtech platform we have developed with Carro allows us to stay agile and quick in responding to evolving needs in a more targeted manner, such as the value of UBI [usage-based insurance] in motor insurance as consumers work from home, resulting in lower car mileage,” said Peter Tay, chief digital officer of income at Carro.

Covered offers three insurance policies: Drivo Classic; Third Party, Fire and Theft; and Third Party. While the Classic policy covers everything from vehicle damage and medical expenses to personal accident benefits and towing services, the other two focus on damage, death, and injury to the third party.

See also: Analysis: Carro is on track to hit $1b in revenue for latest financial year

In addition to insurance, Carro will also provide three maintenance plans under Covered – Prime, Plus, and Pro. The Prime option is included in Covered by default, and drivers can choose to upgrade to one of the other two options based on their driving needs. Charges for the maintenance plan are billed monthly based on the distance driven.

Carro said it will use the data gathered from the insurance and maintenance plans to perform early diagnosis of faulty car parts and help customers replace them.