Wondering what Pay As You Drive Insurance is? Well, you have landed on the right blog. We have created a Pay As You Drive car insurance guide that will help you determine if it is worth buying. So, let’s get in.
Pay As You Drive Insurance Meaning
Pay As You Drive is a car insurance add-on cover that helps you save money on insurance premiums by paying only for the number of kilometres you decide to drive.
This policy differs from a standard comprehensive or third-party car insurance plan in the way that premiums are paid based on distance your car has driven rather than a flat rate every year.
So, with the Pay As You Drive car insurance add-on, you pay comparatively lower insurance premiums as it enables you to decide the kilometres you will cover in a year and pay only for those decided kilometres.
And if you exceed the kilometres you decided on, you can easily get a top-up to extend your coverage on your policy. On the other hand, if you drive less than the kilometres decided on, you have the option to carry forward any kilometres to the next year.
Also Read: 5 Factors That Increase Price of Car Insurance Plan
Features of Pay As You Drive Car Insurance
| Features | Benefits |
| Lower Car Insurance Premiums | If you use your car occasionally, you will pay a lower car insurance premium than a standard plan. |
| Top-Up Limit | If you feel you are about to exceed the declared distance travelled by your car, you can top it up with a suitable km range to ensure continuous coverage. |
| Carry Forward Limit | If you do not use all the kilometres you opted for, the unused kilometres can be transferred to the next car insurance policy year. |
Who Should Opt for Pay As You Drive Car Insurance?
Infrequent Drivers
Individuals who usually do not drive their four-wheeler around a lot or only take it out on special occasions will find that Pay As You Drive car insurance works well for them since they will pay only for the time they take their car out.
Individuals Who Prefer Public Transport
Individuals who use public transport more for their daily commute than a car can benefit from getting their car insured with pay-as-you-go insurance.
Multiple Car Owners
Individuals who own multiple cars use one of the four-wheelers less frequently than the other. Therefore, it is wise to pay only for the kilometres you drive on the four-wheeler you use irregularly.
Also Read: 5 Tips to Compare Car Insurance Quotes the Right Way
How to Buy the Best Pay As You Go Car Insurance?
The best way would be to compare and contrast plans from different insurers and choose one that best suits your coverage needs. Once you’ve decided on an insurer here is what you need to do:
- Visit your insurance provider’s website and fill out the form with the details of your four-wheeler, email ID, and mobile number.
- After typing in the OTP, confirm your four-wheeler’s RTO, make and model, registration number, etc and then proceed.
- In the add-on covers screen, select the Pay As You Drive car insurance add-on and any other add-on to boost your insurance coverage.
- View your insurance quote and your selected add-on covers.
- Fill in all the remaining information regarding your previous car policy, nominee details, inspection method, etc.
- Proceed to make the payment. Once your payment is successful, you’ll get a soft copy of your car policy in your inbox.
Conclusion
Pay As You Drive insurance offers car owners a way to get personalised premium quotes based on how much they’ve used their car within a given year. This allows them to save a lot on car insurance premiums while still getting the coverage they need.
You can find several insurance companies offering cheap pay as you go car insurance plans, so all you need to do is choose the one that best suits your needs.