Carrot Insurance under fire after drivers were threatened with car insurance cancellations due to faults in the app

Young drivers and an MP are putting pressure on Carrot Insurance after its app failed to accurately measure people’s driving and threatened to cancel their insurance as a result, according to the BBC.

The app is one of those many solutions in the InsurTech industry aimed at giving drivers a fairer rate depending on their driving.

The problem is that more than 20 drivers have told the Victoria Derbyshire programme on BBC Two that they have issues with the app. The issues ranged from recording bike and train journeys as car ones to failing to record people using the app.

One woman said she had her policy cancelled after Carrot Insurance’s app did not record her using the app. “”I have a new policy now but declaring the cancellation meant it cost me £1,600,” she said.

Carrot Insurance has said it had fully compensated everyone the BBC show had alerted the company to or that it was trying resolve these issues.

“It seems like the technology [in the case of Carrot Insurance] is not working, is not fit for purpose. So it really needs to be looked at,” said Conservative MP Craig Tracey, who chairs the All-Party Parliamentary Group for Insurance and Financial Services.

Copyright © 2020 FinTech Global

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