First timer drivers face a Herculean task when it comes to getting insured on their first car. At the moment the Bank of Mum and Dad is the easiest way to get a son or daughter insured on a reasonable car without paying a fortune on insurance premiums – but this also means Mum and Dad’s well earned no claims can also be on the line.
But there is another way: Carrot Insurance; and the clue is in the name. Carrot Insurance utilises a unique carrot-and-stick model whereby young drivers are rewarded by safe driving with monthly cash rewards reducing the overall cost of insurance depending on how safe their driving has been every 3 months.
Using a telematics unit – the i-box – Carrot has created a bespoke driver feedback platform that offers total transparency and a genuine opportunity for the customers to feel fully engaged in the process of driving safety.
The i-box is supplied and fitted to your car at no additional cost by a member of Carrot’s expert mobile installations team, making sure the box is installed within two weeks of your policy start date. And as soon as it’s done and the i-box is activated, the Carrot send customers an exclusive Carrot Card prepaid MasterCard, which is loaded with a £20 welcome bonus – and the card is then used by Carrot to pay cash rewards to drivers depending on your quarterly driver score.
Drivers using the system have access to their Driving Style score via an online dashboard, meaning you can see the impact on every journey has on the overall scoring and value of cash rewards you can earn. Carrot has also implemented a social media focus, meaning users can post their Driving Style scores across on Facebook and see how they compare with their friends and family.
The way the score is a worked out is by monitoring driving style such as acceleration, braking, swerving, and the number, and length of journeys, made. This information is then compiled into three categories – speed, smoothness and usage – those are then combined to an overall Driving Style score, from which quarterly rewards are calculated, with customers being able to earn up to a maximum of 15% off their annual premium via cash rewards.
“We’re finding that the combination of lower premiums, generous Driving Style cash rewards, refer-a-friend rewards and further cashback from our retail partners offers something really refreshing and genuinely appealing to young drivers.”
Ed Rochfort, Carrot Insurance
At the outset, policyholders choose their annual mileage – between 3,000 and 7,000 to start with – but can buy Top-Up miles should they need more. This enables them to pay only for the miles they need, helping them get on to the road much more affordably in the first place.
A £20 welcome bonus is paid to every customer that receives a Carrot Card at the inception of his or her policy and is paid subsequently as a reward for having their i-box installed and activated. If the policyholder improves on their Driving Style starting score, cash rewards are paid on to a Carrot prepaid MasterCard card at the end of each quarter.
The Carrot Card enables the holder to earn cashback when used at a network of high street retailers, including Topshop, Debenhams, House of Fraser, Halfords and Zizzi – making their cash rewards go even further.
A £40 cash reward is also paid to the customer for each friend that goes on to buy a policy as a result of Carrot’s unique Facebook App