Etiqa introduces AI-based Drive Less Save More car insurance feature

Insurance provider Etiqa has introduced a new AI-driven usage-based car insurance feature that promises lower premiums of up to 30 percent


Local insurance provider Etiqa has introduced a new usage-based car insurance feature, dubbed Drive Less Save More (DLSM), which uses artificial intelligence (AI) to calculate the driver’s mileage, and adjust the premiums accordingly. Etiqa says that the scheme is able to help drivers reduce their car insurance premiums by up to 30 percent, and is available for those who sign up or renew one of the company’s Private Car comprehensive insurance plans.

Usage-based insurance schemes are being increasingly offered by insurers to help drivers who clock lower mileages to lower their insurance premiums, but Etiqa says that its DLSM feature doesn’t involve the use of telematics or location tracking systems, offering an added sense of security and privacy.

Instead, the DLSM system requires customers to upload an image of their car’s odometer and car number plate via the Tiq by Etiqa app. Etiqa recommends doing so as regularly as possible, with a minimum of 10 days between each upload, and the system’s AI software will assess the images and calculate the rebate applicable.

The rebates will be calculated on a daily basis, as a percentage of the customer’s basic premium, after deducting any no claims discount (NCD), as illustrated via the table below. Customers will receive the rebates in cash, credited to their TiqConnect eWallet within 3 working days, and they can encash the rebate straight to their bank accounts or via PayNow.

TierDaily distance less thanDaily discountAnnual rebate

Etiqa says that the introduction of the new feature stemmed from the general decline in car usage in Singapore following the pandemic, despite the increase in demand for car ownership here. It notes that the car population (excluding private hire cars and taxis) had risen by almost four percent since the start of 2021 to end of September this year, according to figures from the Land Transport Authority (LTA).

In addition, the introduction of features such as DLSM serves as further incentives to entice drivers to reduce their vehicle usage, as part of a push towards a sustainable and green transportation future for Singapore.

“Singapore’s love for cars has not been dampened by the pandemic. While this trend is ongoing, we also understand that car usage has inevitably fallen as people adopt hybrid work models and curtail outdoor activities given the pandemic,” said Dennis Liu, Chief Digital and Transformation Officer of Etiqa. “With the rollout of the new DLSM feature, we aim to provide drivers with a form of reward for the fewer mileage clocked on the road.”

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Ben Chia
CarBuyer's senior staff writer went out to explore the Great Big World, including a stint working in China (despite his limited Mandarin). Now he's back, ready to foist upon you his takes on everything good and wonderful about the automotive world. Follow Ben on Instagram @carbuyer.ben