Carrot Insurance

What Carrot Insurance does

Carrot Insurance Services, a trading name of Acorn Insurance & Financial Services Ltd, is a UK-licensed (FCA Firm Reference 311873) motor insurer that specialises in telematics-based car insurance for drivers aged 17-24. Founded in 2012 by Trak Global and acquired into the Acorn Group in 2021, the company underwrites and distributes annual motor policies that pair either a hard-fitted black box or its newer solar-powered Theo self-install device (provided by ThingCo) with the Better Driver by Acorn App. Driving behaviour data — covering mileage, speed, smoothness (acceleration, braking, cornering) and time-of-day usage — feeds a proprietary Driving Style Score that rewards safer driving through premium adjustments and a No Claims Bonus mechanism at renewal.

The revenue model is built on recurring annual or monthly insurance premiums, supplemented by usage-based top-up mileage (TUM) charges when customers exceed policy limits, and a growing attach-rate on partner-sourced add-on modules including breakdown cover (Haven), keycare (AA), motor legal protection (Auxillis), windscreen repair (Auto Windscreens), and replacement vehicle cover. Distribution is multi-channel: direct online self-serve quoting, a UK-based phone sales and service centre, and the Quotezone price comparison platform targeting the 18-25 segment among 4+ million annual shoppers. Pricing is fully quote-based, reflecting individual driving, mileage, claims history, and personal details, with monthly instalments facilitated through Granite Finance credit agreements.

The company operates within the Acorn Group's broader specialist-insurance platform, which supports over 500,000 UK policyholders and reports £742m of gross written premium with consistent year-on-year growth. Carrot's brand is anchored to a road-safety mission originating from founder Kamran's 2007 loss of his 18-year-old son, and operationalised through the Project Zero initiative in partnership with the Bobby Colleran Trust. The technology is telematics rather than AI-native: scoring relies on deterministic behavioural metrics rather than disclosed machine-learning models, and there is no evidence of generative AI or advanced predictive underwriting capability in the source material.

Name

Carrot Insurance

Legal name

Acorn Insurance & Financial Services Ltd

Website

https://carrotinsurance.com

Company type

Private

Founded year

2012

Operating status

Operating

Headcount range

51–100 employees

Short description

Carrot Insurance is a UK telematics-based car insurer that uses black box and smartphone devices to monitor and reward safe driving among drivers aged 17-24, operating as a specialist brand within the Acorn Group.

Ownership category

akta.pro rank

Product category

Young Driver Telematics Car Insurance

NAICS

Direct Property and Casualty Insurance Carriers (524126)

SIC

Insurance Carriers, Nec (6399)

akta.pro primary industry

Usage-Based / Telematics Personal Auto Insurance (FSAJAAAB)

akta.pro secondary industries

Pay-Per-Mile Personal Auto Insurance (FSAJAAAC), Standard Personal Auto Insurance (Liability, Collision & Comprehensive) (FSAJAAAA)

Keywords

• Telematics car insurance
• Young driver insurance
• Black box insurance
• Usage-based insurance
• Motor insurance UK

Headquarters

HQ city

Crewe

HQ country

United Kingdom

HQ region

Europe

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Telematics Motor Insurance Premiums: Annual or monthly recurring insurance premiums for young driver coverage. Customers pay for motor insurance policy with telematics device monitoring. Premium based on personal details, driving behavior, mileage allowance, claims history, and no claims discount.
2. Top-Up Miles (TUMs): Additional mileage purchases when customers exceed their allocated annual mileage allowance. Charged with non-refundable administration fee plus additional premium calculated based on driving score.

Pricing tiers

Go-to-market motion3 records

Distribution channels3 records

Marketing channels4 records

Core offering

Carrot Insurance provides telematics-based motor insurance policies for young and new drivers aged 17-24 in the UK. Policies use either a hard-fitted black box or the solar-powered Theo self-install telematics device to monitor driving behaviour (speed, braking, acceleration, cornering, time of day) and feed a proprietary Driving Style Score. Safe driving is rewarded with potential premium savings, No Claims Discount accumulation at renewal, and access to a companion smartphone app and online customer portal.

Product overview

Carrot Insurance is a telematics-based motor insurance brand under Acorn Group, specialising in coverage for young and new drivers aged 17-24. The core product is Private Car Telematics (including a Private Car Telematics Plus tier), which uses either a Theo self-install telematics device or a hard-fitted black box to monitor driving behaviour and reward safe driving. The product portfolio is supplemented by add-on modules including Breakdown Cover (UK/EU via Haven), Carrot 5-Star Keycare (via AA), Motor Legal Protection (via Auxillis), Excess Reimbursement (via Haven), and Replacement Vehicle Cover. Customers interact with their policy through the companion Better Driver by Acorn App and Customer Portal. Founded in 2012, Carrot joined the Acorn Group in 2021.

Differentiator

Problem solved

Functional benefit

Products and services

• Private Car Telematics Core telematics-based motor insurance policy for young drivers aged 17-24, using a black box or smartphone app to monitor driving behaviour and reward safe driving with potential premium savings.
• Private Car Telematics Plus Enhanced version of the core telematics motor insurance policy with additional coverage features and policy document versions for young drivers.
• Breakdown Cover (UK and EU) Vehicle breakdown assistance add-on provided by Haven, available for UK-only or UK and EU travel, attached to the core telematics insurance policy.
• Carrot 5-Star Keycare Key replacement and lockout assistance add-on provided by AA, covering lost, stolen or locked-in keys for the insured vehicle.
• Motor Legal Protection Legal expense add-on provided by Auxillis that supports policyholders in recovering uninsured losses when not at fault for an accident.
• Excess Reimbursement Add-on provided by Haven that reimburses the policyholder's policy excess following a claim.
• Replacement Vehicle Cover Add-on providing access to a replacement vehicle while the insured vehicle is being repaired following an accident.

Quantifiable outcome

• Up to 20% annual premium savings
• +1 more outcomes

Named customers1 record

Segments2 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature4 records

Partnerships

Nine partnerships are on record, tiered core, flagship and minor.

• QuotezonecoreChannel Partner/ Reseller/ Distributor · 4 March 2026Carrot Insurance joined Quotezone's price comparison platform to reach young drivers aged 18-25 seeking affordable telematics coverage. Quotezone has over 4 million annual customers. Partnership targets growing demand for telematics products among young drivers, with research showing two-thirds of 18-25 year olds choosing telematics over traditional policies.
• Acorn GroupflagshipStrategic or Co-development PartnerParent company collective of specialist insurance brands. Carrot joined Acorn Group in 2021, united by shared belief that insurance should work for everyone. Group supports over 500,000 policyholders across UK with GWP of £742m and consistent year-on-year growth.
• Bobby Colleran TrustcoreStrategic or Co-development PartnerRoad safety charity partnership through Project Zero initiative aimed at reducing road fatalities among young drivers. Partnership has reached multiple schools educating children and young people about road safety and dangers of reckless driving.
• Trak GlobalminorStrategic or Co-development PartnerFounded by Kamran, Nick Corrie, and Alan Cottrill in 2009 to realize Kamran's mission of reducing accidents involving young people using telematics technology. Trak Global launched Carrot Insurance in 2012.
• ThingCocoreTechnology or IntegrationTelematics provider for the Theo self-install device. ThingCo provides the solar-powered Theo device that monitors driving behavior and sends insights to the Better Driver by Acorn App.
• HavencoreTechnology or IntegrationInsurance provider for breakdown cover products including Breakdown UK, Breakdown UK & EU, and Excess Reimbursement. Multiple policy document versions indicate ongoing product relationship.
• Auto WindscreensminorImplementation/ SI/ Consulting PartnerWindow and glass repair partner for claims handling. Customers can book appointments through Auto Windscreens for windscreen repairs and replacements.
• AuxillisminorImplementation/ SI/ Consulting PartnerLegal expenses insurance provider for Motor Legal Protection coverage, helping customers recover uninsured losses where not at fault for accidents.
• Hanwha General InsuranceminorStrategic or Co-development PartnerSouth Korean insurance company that achieved record auto insurance revenue within six months of merging with Carrot Insurance, demonstrating successful international integration.

Scale indicators5 records

Recent moves2 records

Expansion highlights5 records

Broad incumbents

• LV= General Insurance (Covéa): UK personal motor and home insurer, now part of Covéa, with telematics offerings. Comparable on personal motor underwriting and PCW distribution; broader incumbent with home and other lines.
• Direct Line Group: Major UK personal lines insurer (Direct Line, Churchill, Privilege, Darwin) with telematics and young-driver offerings. Competes with Carrot on PCWs and direct channels while also operating in home, travel, and other personal lines — a broader incumbent.
• Aviva UK: UK's largest general insurer offering personal motor with telematics products, broad distribution, and significant capital. Competes with Carrot for young-driver quotes on PCWs but with a much broader portfolio and brand.
• Admiral Group (including Bell and Elephant brands): One of the UK's largest personal motor insurers; its Admiral, Bell, Diamond, and Elephant brands include young-driver telematics products that compete head-on with Carrot on PCWs and direct channels. A scaled incumbent with broader product portfolio and capital base.
• Hastings Direct: UK digital-first personal motor insurer with telematics options and a price-comparison-led acquisition model. Directly comparable distribution model and overlapping young-driver target market.

Emerging players

• By Miles: UK pay-by-mile usage-based motor insurer targeting lower-mileage drivers. Comparable to Carrot on usage-based pricing technology and telematics-led underwriting, though focuses more on low-mileage urban drivers than young drivers specifically.

Others

• Trak Global Group (now Motability Operations / RSG): The telematics technology provider that originally founded Carrot Insurance in 2012. Adjacent and ecosystem-related: provides telematics platforms and data services to insurers including Carrot's competitors, making it a partial supplier peer rather than a direct competitor.
• ThingCo: UK telematics hardware provider that supplies the Theo self-install device used by Carrot. An ecosystem / supplier peer rather than a competitor, but directly relevant as it underpins Carrot's product experience.

Direct peers

• Insurethebox: UK telematics-focused personal auto insurer, with a strong focus on young and new drivers and a black-box-plus-app proposition. Closest direct competitor to Carrot in the usage-based young-driver motor insurance niche.
• Marmalade Insurance: UK specialist young-driver and learner-driver insurer using telematics and black-box technology. Directly comparable to Carrot on target segment (17-24), product (telematics-based motor insurance), and distribution (online + PCWs).

Market position

Strengths5 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/CarrotInsurance
• Facebookfacebook.com/carrotinsurance
• LinkedInlinkedin.com/company/carrot-insurance

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Carrot Insurance