Carrot Sonbo Launches Auto Insurance Charging Premiums Based on Driving Distance

[Asia Economy Reporter Oh Hyung-gil] Carrot General Insurance announced on the 11th that it will enter the automobile insurance market with a 'Pay-Per-Mile Auto Insurance' that charges premiums based on the distance driven.

Unlike traditional auto insurance, which requires full annual premium prepayment, the Pay-Per-Mile Auto Insurance requires only a fixed enrollment premium, after which the premium is calculated monthly based on the mileage driven and paid in installments.

There is also an annual payment option where the premium is paid in a lump sum at the time of contract, and at the end of the one-year term, the premium is settled per kilometer based on the actual distance driven.

Carrot General Insurance expects the Pay-Per-Mile Auto Insurance to receive great response as it is 8% to up to 30% cheaper compared to the average premium of direct auto insurance.

The biggest feature of the Pay-Per-Mile Auto Insurance is the 'Carrot Plug' and 'Carrot Mobile App,' the first driving data measurement devices introduced in domestic auto insurance.

The Carrot Plug is immediately shipped to customers who choose the monthly settlement type of auto insurance after enrollment. When the customer plugs the device into the car's cigarette lighter socket, it measures real-time mileage and automatically calculates the premium.

Drivers can check real-time mileage and premiums through the Carrot Mobile App, and in emergency situations, pressing the SOS button automatically connects a call from the customer center through the 'E (Emergency) Call' service. Additionally, new services are being prepared, such as automatically detecting accidents by recognizing sudden acceleration changes.

Jung Young-ho, CEO of Carrot General Insurance, said, "Pay-Per-Mile Auto Insurance is a service that provides a new choice opportunity for rational consumers in the previously uniform auto insurance market," adding, "With our own technology, we plan to analyze customers' driving patterns and safe driving habits to offer more benefits to safe drivers upon renewal in the future."

This content was produced with the assistance of AI translation services.