Carrot, an insurtech platform based in South Korea, has launched a pay-per-mile insurance policy designed specifically for electric vehicles. Called “Carrot EV Cover”, the service was created by the company to supplement the recent release of car manufacturer KIA's EV6 model, the South Korean automaker’s first all-electric model.
Using the coverage for EV6 as a starting point, Carrot says it plans to expand product offerings for other electric vehicles “soon.” Paul Jung, CEO of Carrot, said: "In response to the changing landscape and the demand in the growth of the electric vehicle across the globe, Carrot is spearheading the way to revolutionise the auto insurance and contribute to driving towards eco-friendly society."
"In line with perceptions surrounding the electric vehicles, our team focused the efforts in providing the EV owners with adequate insurance coverages that are smart and efficient,” he added.
Carrot EV Cover: what does it offer and how does it work?
According to the spokesperson at Carrot, the policy is being launched partly as a way to provide electric vehicle owners with an insurance option that is fair and tailored for sustainable mobility.
Insurance companies usually need to account for the added repair costs, thus charging consumers higher premiums due to the higher cost of repairing the damages compared to those of a gas-powered vehicle.
The coverage is constructed with four main unique value propositions in addition to comparable coverage limits for bodily injury and damage liability. These are 100% replacement of batteries upon accident, comprehensive or collision coverage with a guaranteed payout of up to 150% of the 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 kilometers.
Carrot is currently in a series of discussions to extend its offerings to include the cover for the liabilities exposed from charging the vehicles, as well as third-person injuries.
There are over 160,000 electric vehicles on the road as of May 2021 and the number is growing, according to the Ministry of Transport of South Korea. The global green movement away from vehicles powered by fossil fuels is being driven by the citizens as the awareness of climate change along with the sustainability commitments from the corporate world are being raised.