South Korean insurtech launches pay-per-mile insurance

Carrot, a leading insurtech from South Korea, rolled out its pay-per-mile auto insurance specially designed to protect electric mobility and owners. The new service, called ‘Carrot EV Cover’, was put together to supplement the recent release of the KIA’s EV6 model, the South Korean automaker’s first all-electric model embedded with Hyundai Motor Group’s own EV-only electric-global modular platform (E-GMP). Carrot plans to expand its product offerings for other electric vehicles.

Carrot EV Cover is being launched partly as a way to provide electric vehicle owners with an insurance option that is fair and tailored for sustainable mobility. Due to higher cost to repair damages than those of a gas-powered vehicle, insurance companies usually need to account for the added repair costs, thus charging consumers higher premiums. But Carrot’s cover with the rates are reasonably priced and yet designed in ways that suit specific needs for owners of electric vehicles.

The coverage is constructed with four main unique value propositions in addition to comparable coverage limits for bodily injury and damage liability; 100% replacement of batteries upon accident, comprehensive or collision coverage with guaranteed payout up to 150% of value of the vehicle, limits that cover liability for death, injury and damages occurring while charging the vehicle, and lastly, emergency dispatch and towing service with an extended distance of up to 120 kilometres.

Carrot is currently in a series of discussions to further extend the offerings to include cover for liabilities exposed from charging the vehicles and third-person injuries.

According to Ministry of Transport of South Korea, the country has over 160,000 electric vehicles on the road as of May 2021.

Paul Jung, CEO of Carrot, said, “In response to the changing landscape and the growth of electric vehicles across the globe, Carrot is spearheading the way to revolutionise auto insurance and contribute to drive towards eco-friendly society. In line with perceptions surrounding electric vehicles, our team focused efforts on providing EV owners with adequate insurance coverage that is smart and efficient.”

Carrot has attracted close to 300,000 customers for its pay-per-mile auto insurance within 2 years of operation. In July, the company announced that they have raised fresh funding and doubled its capital close to $200 million.

Categories: Infrastructure, Insurance

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