Singapore-based automotive marketplace Carro has launched an AI-powered pay-per-mile insurance and maintenance plan, dubbed Covered, for cars.

The newly launched offering will enable drivers to tweak their insurance premiums and maintenance coverage to suit their lifestyle.

Carro claims that Covered, which Singapore’s first AI-driven insurance plan, covers all types of cars including electric vehicles (EV).

The new product will be distributed by Carro’s subsidiary Genie Financial Services and underwritten by NTUC Income.

Covered removes the need to manage multiple providers for different services, thereby ensuring that drivers pay only for what they use, the startup noted.

It offers three insurance policies, namely Drivo Classic; Third Party, Fire and Theft; and Third Party.

Consumers can sign up for the policy digitally by paying an annual fee of $111.55 (S$150).

After that, they will get a Carro IQ device, an onboard telematics unit, handled by Carro’s technology partner, Quantum Inventions (QI).

It will track the vehicle’s odometer data, which will be used to calculate usage-based insurance and maintenance charges.

Carro founder and CEO Aaron Tan said: “Digitalisation has turned the auto industry into a whole new ball game. As one of the first to embrace it through our investments into digital technologies, Carro has been able to provide new generations of car owners a single touchpoint to resolve their car concerns through AI-driven, end-to-end services – including UBI.”

Last month, US-based insurtech Mile Auto secured $10.3m in seed funding to expand its low-cost car insurance offering.

It uses technologies like computer vision, machine learning and analytics, which helps it in collecting and validating odometer data.