Mr. A in his 30s, who purchased a car last year, is considering renewing it ahead of the expiration of his auto insurance premium. Meanwhile, I found out that a product that pays insurance premiums only as much as one insurance company operated. Mr. A, who usually drives less, is planning to change his insurance company because the premium is much cheaper. In addition, existing insurance products had to be paid 970,000 won in a lump sum to extend them, but this product only had to pay 95,000 won and then pay the amount of driving every month, which eased the burden. Mr. A expects insurance premiums to be cheaper as the vehicle runs less in the future.

In recent years, auto insurance, which pays only as much as the actual driving, is gaining popularity in the 2030s, who value efficiency.

According to the insurance industry on the 31st, Carrot Insurance launched a car insurance “Permail Special Agreement” in 2020 that calculates insurance premiums by driving distance alone. In 2022, there were 500,000 cumulative subscriptions, but in July this year, it went viral and exceeded 2 million. The registration rate also reached 91.5 percent.

Carrot Insurance is believed to be mainly subscribed to by customers such as office workers who do not have much mileage. In general, households in their 20s and 30s have to pay 900 to 1 million won in advance for the first insurance payment after purchasing a car, but it is also considered an advantage to be able to pay a relatively small cost every month.

Thanks to this, the auto insurance market continues to grow steadily among small and medium-sized insurance companies, with five large non-life insurers accounting for more than 85% of the market share. In addition, in order to understand the exact driving distance of subscribers, some vehicles that do not have linked driving distance are provided with plugs, which are devices that connect Internet of Things (IoT) sensors.

However, some users are concerned that the connection, such as response and service inquiries, may be delayed in the event of an accident as it is not larger than large insurance companies.

A user who is considering signing up said, “I think I can save insurance premiums because I don’t usually have a lot of mileage,” but added, “Since it’s not a big company, I’m worried that I might be inexperienced in terms of responding to accidents.”

In response, an official from Carrot Insurance said, “It’s a kind of preconceived notion about responding to accidents, and although there is a difference in volume from large insurance companies, it’s not that big of a difference,” adding, “Unless there are many accidents nationwide such as flooding.” “Related products have grown steadily recently, and many customers are looking for them,” he explained.