Pay As You Drive Car Insurance

Low Premium

If you use the car occasionally, you will pay a lower premium as compared to a standard Comprehensive Car Insurance Policy, where the premium is not dependent on the car’s usage or distance travelled.

Customisation

You can customise the insurance policy based on the vehicle’s usage in terms of the estimated distance to be covered by the car.

Flexibility

If you feel you are about to cross the declared distance travelled, you can top it up with the suitable km range and ensure continuous insurance coverage.

Tenure

Typically, the tenure of the Pay as You Drive cover stands at one year.

Uniqueness

PAYD’s uniqueness is that it is usage-based. You can choose from different distance-based slabs (for example, below 3,000 km, between 3,000 to 5,000, etc.) and pay the premium based on your car’s usage.

A Comprehensive Cover’s uniqueness lies in the fact that you can buy an annual cover or a long-term cover (for example, a three-year cover) to insure your car against damages for a long time.

Premium

The payable car insurance premium is primarily based on the distance covered by the car.

The payable premium in this vehicle insurance policy is primarily based on the car’s make and model, age, location, add-ons, and Insured Declared Value (IDV).

Customisation

The PAYD cover is highly customisable as it allows you to insure your car based on your usage. Unlike the Comprehensive Policy, here, if you use your car less, you pay less premium.

Duration

Typically, the tenure of Pay as You Drive cover stands at one year. However, it may differ from insurer to insurer.

Whether you use your car or not has no impact on the policy’s duration. For example, if you have chosen a one-year policy, the policy’s duration will be one year, irrespective of the car’s usage.

Claims

You can raise a claim as per the policy’s terms and conditions till the time you have not crossed the selected kilometre barrier.

You can raise a claim as per the policy’s terms and conditions till the time your policy has not expired.

Telematics

Your insurer might ask you to install a Telematics device in your vehicle to keep track of the kilometres.

Usually, there’s no requirement for a Telematics device in a Comprehensive Car Insurance Policy.

Existence

It is a relatively new type of car insurance policy in the Indian market. All existing insurance providers might not offer it at this stage.

Such a cover has been in existence for a few decades in the Indian insurance market. It is a popular cover and has sustained over a period.