Carro, NTUC Income launch pay-as-you-drive insurance
Premiums will be based on the number of kilometres driven each month.
Automotive marketplace Carro and NTUC Income launched a car insurance policy with which terms apply based on how much owners drive their car.
The ‘pay-as-you-drive’ model is the new usage-based car insurance born out of the partnership. Subscribers will get charged only for the kilometres driven each month, hence the less users drive the car, the less they pay.
The new insurance service uses vehicular telematics to assess how much each of the subscribers’ cars is driven in a single month, and determines the exact premiums to be paid.
Carro will offer packages including 1,500 kilometres of mileage per month for every standard subscriber and the rebates for the un-driven distance will be used to offset the subscription fees for the following payment period, which can reach up to $800 per annum.
The new insurance service launches 28 November, making available to consumers all-in flat monthly charges covering insurance, road tax, regular maintenance and 24-hour assistance.