The IRDAI (Insurance Regulatory and Development Authority of India) has permitted all general insurance companies to offer 'Pay As You Drive' and 'Pay How You Drive' in which mandatory 3rd party cover is provided and the own damage cover premium is determined by the number of kilometres driven.
Both the insurance plan works as per the driving behaviour and history of the car owners. Vehicle owners can now avail the benefit of these motor insurance plans depending on the number of kilometres driven and safe driving habits.
The Pay As You Drive is a newly launched motor insurance model which can help the owners to customise the plan and reduce the premium as well. Under it, the own-damage coverage premium is based on the distance covered.
The PAYD policy's insurance premium is decided by the number of kilometers driven by the insured. Under this, the number of kilometers is fixed by the insurer. The one who has driven for less than 15,000 km annually is eligible for this plan.
Another newly introduced plan is the Pay How You Drive. As the name suggests, the motor vehicle insurance premium is decided by driving habits. Earlier, there was no such motor insurance model but recently, the IRDAI has launched to grab the customers' attention and keep them intact with the right insurance coverage.
Here the insured need to be more careful while driving. This will help in reducing the insurance premium. What's more? It encourages the insured to follow more safe driving practices.
As you know, good driving habits can significantly lower your car insurance premium, you can follow the below safe driving habits to reduce the insurance premium-
The major cause of accidents in India is distractions. Drivers who use their mobile phones are more likely to be involved in road crashes. Even there are many other sources of distractions that might indulge others in danger. To avoid this, here are some tips that you should consider-
Traffic jams are another cause of accidents. After seeing the congestion, the drivers aggressively accelerate and try to cut off the other. After all, it is a matter of patience to reach the destination.
Try to be polite to make your drive more pleasant and help prevent accidents. Moreover, keep a safe distance between you and the vehicle in front of you. Do not honk unnecessarily, it only creates fuss in the middle. Use your turn signals to be safe on the road.
Another crucial tip for everyone is to never rush. Over speeding is another cause of road accidents. Always respect the speed limits. Take your time & adapt defensive driving techniques as this will help you avoid situations where you have to suddenly apply your brakes and stop the vehicle.
Fatigue is one of the frequent causes of road accidents. Make sure you have enough sleep before hitting the road. Dizziness and restlessness might deviate you from the lane, or it might trouble you in keeping your eyes open. Hence, take a good rest and decrease the risk of accidents.
Driving habits do not change overnight, but with time you can inherit them. If you are planning to buy the newly introduced car insurance policy, make sure you have good driving history. You can also pay attention to the above-mentioned tips and save a lot!
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