Pay As You Go/Drive Insurance

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 a policyholder reduce his/her premium based on the usage of the car.

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What is Pay As You Drive Insurance?

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 affordable car insurance option is for those who don’t drive frequently, have more than one car or prefer responsible driving habits.

Features of Pay As You Drive Plan

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 drive is a cover that offers discount depending on the car usage as per the total kilometres covered.
• The benefits of this plan can only be availed if the policyholder uploads a video of their car before their current motor insurance policy starts.
• A policyholder can save on own damage car insurance premium by opting this plan.
• Car insurance based on kilometres driven is beneficial for those who drive occasionally or have more than one car, some of which are not used more frequently.
• If the declared kilometres are about to exhaust, a policyholder can also top-up with more kilometres.

How Does Pay As You Drive Insurance Work?

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:

• Declare Car Usage: First, you need to declare the car usage for the policy period of one year based on the total number of kilometres that your car will cover.
• Odometer Reading: You will be required to declare the odometer reading of your car by uploading a video before the policy starts to avail the benefits of this plan.
• No Telematics: This plan is currently based on the declaration of the customer and no telematics device will be installed in the insured car.
• Premium: Once you are eligible for this plan, you can receive a certain discount on your own damage insurance premium.
• Claim Process: If the claim is within the specified limit then the claim will be settled as normal. However if it exceeds this limit, the policyholder may be asked to pay a certain amount as co-payment at the time of claim.

Who Should Buy Pay As You Drive Insurance?

Car usage varies for different kinds of people. Some may use them daily, while others may not use it as much. Taking cognizance of varying car usage, the PAYD car insurance has been designed for the following kind of people:

• It is ideal for car owners who drive their vehicles very less, such as seasonal drivers.
• This type of plan is perfect for people who own multiple cars and do not use all the cars in equal measures.
• This plan is tailor-made for people who mostly commute through public transport and rarely use their personal car.
• The pay as you drive cover is suitable for people who are often required to travel out of the station and are unable to use their car a lot.

How to Buy Pay as You Drive Insurance?

Follow these steps to purchase a Pay as you Drive plan from Policybazaar.com:

• From the homepage, select “Car Insurance”.
• Enter your car number in the given form and proceed with car insurance quotes
• Select your car details such as model, variant, RTO, registration year, etc.
• Fill in the given form with your name, email and mobile number
• Select the policy expiry date and claim details of the previous policy
• Now you will be able to find the details of Pay as you drive plans offered by different insurers
• Select the desired kilometre limit and proceed
• To avail this plan, you will be required to upload photo of your car's odometer on Policybazaar app
• To upload the photos, log-in to the Policybazaar app from the same registered mobile number.
• Once you have uploaded the photos, you will be eligible for a discount on your premium
• Pay the discounted premium amount via desired payment mode
• Once you have paid the premium, your Pay as You Drive insurance plan will be issued.

What Happens if the Declared Car Usage Limit is Exhausted?

In case your yearly car usage limit gets exhausted, you can top-up the plan with extra kilometres. You can also switch to a comprehensive insurance policy on your next car insurance renewal.

Moreover, if your car policy 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.