Specialist car insurance provider Carrot Insurance was formed in 2012, after the death of company founder Kamran Mahmoudzadeh’s son in a motoring accident. The idea was to offer a form of insurance that rewards safe driving and so cuts further tragedies.
Defaqto: 3/5 stars & 2/5 stars (depending on policy)
Six Carrot Insurance policies achieved three-star ratings. These were the New Driver and Better Driver insurance policies underwritten by Aviva, Aviva (comparison site policy) and Zurich. Two stars were awarded to the Better and New Driver policies from Zurich (comparison site policy).
Trustpilot: 3.8/5 stars
TrustPilot awarded Carrot Insurance a rating of 3.8 out of five based on 2,561 customer reviews. A total of 40% of respondents rated the company as excellent, while 19% said their experience was great. At the other end of the scale 26% had a bad experience.
The insurer focuses on telematics or black box car insurance policies, which use GPS technology to track policyholder’s speed, mileage and driving style.
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Each week policyholders get a Driving Style score and issues rewards that differ depending on the type of policy held and how well the insured car is driven.
Carrot Insurance is a specialist insurer, offering telematics or black box insurance. This makes it an especially worthwhile insurance provider to consider in the following circumstances:
if you like the idea of a rewards scheme
if you are a learner driver
if you are a new driver
if you are an inexperienced driver
if you want to be able to track your driving performance to see where you can make improvements
Carrot Insurance responded to a House of Commons’ inquiry into why so many young drivers are involved in road traffic accidents by maintaining that all 17-to-22-year-olds should have a black box policy for the first year after passing their driving test.
The insurer has also been lobbying the government to cut or scrap income premium tax for young and inexperienced drivers who buy telematics cover, to help reduce the cost of premiums and promote safer driving.
The Financial Ombudsman Service received fewer than 10 complaints about Carrot motor insurance in the first half of 2020. To put that in context, 67 firms had 10 or more complaints each and those totalled 4,550 complaints. Nearly 200 firms had fewer than 10 each, sharing just 479 complaints between them.