Know All About Pay As You Drive Insurance

Do you pay hefty car insurance premiums despite occasionally driving? Picture a world where your car insurance adapts to your driving habits, offering reduced premiums on responsible driving. With pay as you drive car insurance, this is now a reality. The safer and less you drive, the more you save on your car insurance premium

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What is Pay As You Drive Insurance?

(PAYD) Pay as you drive insurance, also referred to as pay as you go or pay as you use car insurance, is a flexible four-wheeler insurance policy that allows car owners to pay the premium based on the distance travelled and driving behaviour.

Instead of a fixed price, your premium adjusts based on how many kilometres you cover in a policy year with your car. This affordable option is for those who don't drive frequently, have more than one car or prefer responsible driving habits.

How Pay As You Drive Insurance Works?

Pay as You Drive insurance operates differently than a regular car insurance policy. However, the coverage remains the same and is based on the total number of kilometres driven during the policy tenure. Here is the process:

• Once you buy pay as you drive insurance with a driving plan of certain kilometres per year, you need to provide your insurer with the odometer reading.
• The coverage is only valid while your car is within the chosen driving limit.
• You can always top up your coverage when you are nearing your yearly driving limit.

Any claims made will be processed as usual if your vehicle stays within the kilometre range you opted for while buying pay as you drive insurance. Your insurance company will offer a discount at the time of your policy renewal based on the kilometres you covered during the policy period.

Benefits of Pay As You Drive Car Insurance

Pay as you go insurance is a highly beneficial plan for those who drive occasionally. It can help policyholders save a sizable amount on their four-wheeler insurance premiums. Check out some key advantages of pay as you drive insurance:

• Significant Savings: Being a usage-based policy, pay as you drive insurance premium is much lower than a standard vehicle insurance policy since you only pay based on kilometres you choose. Hence, if you drive less, you pay less and save more.
• Flexibility: PAYD insurance enables you to adjust your plan based on your driving. While buying pay as you drive insurance, you can choose the number of kilometres that suit your requirements and top up with more in case you have exhausted the limit.
• No Telematics: Pay as you go insurance is currently based on the declaration of kilometres by the policyholder, and no telematics device is needed to be installed in the insured vehicle to track the readings.

Who Should Opt For Pay As You Drive Car Insurance?

Cited below are some points to understand who would benefit most from pay as you drive insurance:

• Those with Multiple Vehicles: Individuals who own several vehicles but do not drive them all in equal measure.
• Occasional Drivers: Car owners who drive only a few hundred kilometres.
• Seasonal Drivers: Individuals who drive infrequently and only during certain times.
• Public Transport Commuters: Vehicle owners who primarily use public transportation for their daily commute and rarely drive a car.