Carrot Introduces Auto Insurance Offering 20% Discount for Safe Driving

Digital non-life insurer Carrot General Insurance announced on the 23rd that it will launch the 'Good Drive Discount Rider with Accumulating Discounts,' which offers up to an additional 20% discount on auto insurance premiums based on customers' driving habits.

This rider is a product that consolidates the know-how Carrot has accumulated as an insurtech company based on technology and data. It aims to once again change the paradigm of the auto insurance market following the per-mile model.

Currently, many insurers including Carrot provide safe driving discount riders through collaboration with navigation applications. However, many customers, such as first-time drivers without driving history or those who do not use mobile navigation apps, often cannot receive discount benefits because they do not have a navigation safe driving score.

Carrot's 'Good Drive Discount Rider with Accumulating Discounts' addresses this unfairness. Regardless of whether customers have a safe driving score, anyone can receive additional premium discounts after purchasing insurance. For example, customers without a safe driving score will receive discounts based on safe driving after enrollment, and customers with a safe driving score will receive the existing discount at the time of enrollment and additional discounts based on safe driving thereafter.

The premium discount calculation method is also simple. During the one-year auto insurance policy period, the Carrot Plug, which incorporates Carrot's core technology, is installed in the vehicle, and driving data is analyzed to automatically calculate the safe driving score. At the policy expiration, customers can receive up to a 20% discount on their premium depending on the number of months they achieve a safe driving score of 70 or higher.

This rider will first be launched with the prepaid method, where the one-year auto insurance premium is paid in advance, and later plans to expand to monthly premium payment methods.

Anyone who starts or renews auto insurance coverage after May 30 can enroll. It is also possible to combine this safe driving discount rider with various other discount riders.

Moon Hyo-il, CEO of Carrot General Insurance, said, “This rider is a product and service that reflects Carrot’s perspective on the world and customers, introduced with great care. We will continue to grow by constantly striving to find ways for customers to lead safer daily lives.”