In your large pot, heat the olive oil over medium heat. Add the diced onion and sauté until it becomes translucent, about 3-4 minutes. Then, add the minced garlic and cook for an additional minute until fragrant.
Next, stir in the grated carrot, diced zucchini, and green pepper. Sauté the mixture for 5-7 minutes until the vegetables are tender.
Add the canned diced tomatoes, tomato paste, and V8 juice to the pot. Stir well to combine all the ingredients.
Sprinkle in the dried basil, oregano, and sugar, and toss in the bay leaf. Season with salt and pepper to taste. Stir everything together.
Bring the sauce to a gentle boil, then reduce the heat to low. Cover the pot and let it simmer for at least 30 minutes, stirring occasionally.
Once the sauce has thickened and the flavors are well developed, remove the bay leaf and taste for seasoning. Serve over your favorite pasta, and enjoy!