This usage-based motor insurance is also called as ‘pay as you drive’, and it allows the policyholders to pay the motor insurance premium based in the kilometres driven.
As this is a usage-based motor insurance, therefore the customer declares the vehicle used in the coming one year. And the premium is calculated by the distance that is declared in km. The applicants can choose from the following three slabs to declare the km:
Bharti AXA Insurance shared this proposal with IRDAI for their sandbox project and have got approval for the same. And the policy is designed especially for people who drive less.
Simply put, ‘ Pay as you drive’ would work well for people who have multiple cars and do not use all of them often. With this policy, they will be able to save themselves from paying unnecessary huge amount premium. So, if you do not use your personal vehicle regularly, then you can consider ‘Pay as You Drive’ car insurance policy.
Pay as You Drive’ motor insurance policy can be easily purchased in three simple steps online from Policy Bazaar’s website in the following manner:
The policy issued will provide standard motor own damage for one year.
22 Feb 2024In layman's terms, the IDV full form is the Insured Declared Value
31 Jan 2024Investing in a full-coverage car insurance policy is essential for
29 Jan 2024No Claim Bonus (NCB) is a reward given by an insurer to a
17 Jan 2024Buying their first car is no less than a milestone unlocked for
12 Dec 2023The type of four-wheeler you purchase also impacts its insurance