Pay as you drive car insurance helps policyholders save up on their own damage premium based on the total number of kilometres driven in a year. It is a kind of comprehensive car insurance policy that helps policyholders reduce their premiums based on the usage of the car.
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Pay as you drive (PAYD) 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 car insurance premium is flexible and calculated on the kilometres you drive each year. This km based car insurance is for those who don't drive frequently, have more than one car or prefer responsible driving habits.
The Pay as you drive car insurance plan is beneficial and convenient for drivers who do not drive regularly as it can help them save up on their motor insurance premium. Take a look at some of the most interesting features of pay as you drive car insurance:
The Pay as You Go insurance cover functions slightly differently than a regular car insurance policy. Take a look at how pay as you drive motor insurance plan works:
Third-party Liabilities
Any loss or damage you cause to other person or their belongings, including bodily injuries and even loss of life.
Accidental Damages
PAYD insurance offers financial protection in case of damage to your car from a road accident, collision, fire, or natural/man-made disasters.
Theft and Vandalism
Coverage for your car if stolen or vandalised, such as slashed tyres, broken windows, or any other type of defacing of the vehicle.
Personal Accident Coverage
A few PAYD car insurance plans also cover any injuries you suffer in an accident.
Depreciation
Comprehensive insurance doesn't cover the usual wear and tear of the four-wheeler and its parts.
Usage Exhaust
If you exceed the pre-decided kilometres, it may lead to additional premiums or coverage cancellation (depending on the policy's terms).
Driving Outside Geographical Zone
If your vehicle sustains any damage while being driven outside the areas specified in your PAYD policy, the insurer may deny any claim you raise.
Normal Wear and Tear
Damages to the insured car due to usual wear and tear, such as mechanical or electrical part failures, are not covered.
Negligent Driving
Any loss or damage to your car as a result of driving under the influence of alcohol or drugs, or without a valid driver's licence, is not included under the Pay as you Drive insurance cover.
Here's a table to help you understand the main differences between comprehensive car insurance and Pay as you Drive (PAYD) insurance:
In case your yearly car usage limit gets exhausted, you can top-up your PAYD cover with extra kilometres. You can also switch to a comprehensive insurance policy on your next car insurance renewal.
Moreover, if your PAYD car insurance expires and you have covered the required kilometres, you will not be eligible for a discount on premium on your renewal policy. Thus, to avail car insurance based on km driven, you must upload photos of your car's odometer before the expiry of your policy.
The PAYD insurance claim process is similar to that of a standard car insurance policy. Here are the steps:
For a successful PAYD insurance claim processing, you need:
Car Insurance Companies
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Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in
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*Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.
+Savings are based on the maximum discount on own damage premium as offered by our insurer partners.
^Lowest Price Guaranteed is based on certifications shared by insurers with us. Policybazaar will facilitate price matching subject to the terms and conditions of select insurers.
##Claim Assurance Program: Pick-up and drop facility available in 1400+ select network garages. On-ground workshop team available in select workshops. Repair warranty on parts at the sole discretion of insurance companies. Dedicated Claims Manager. 24x7 Claim Assistance.
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