Amazing Benefits of Buying Pay As You Drive Car Insurance
Are you also concerned about the high cost of auto insurance? Well, you need not stress anymore. The IRDAI has introduced usage-based auto insurance. According to this, the insurance premium will be calculated based on the distance driven and driving history.You can, visit the official website of IRDAI for further details. Read on to know more.
Pay as you drive insurance depends on how often the vehicle is used. It bases your premiums on the number of miles a car has been driven over a certain period of time. The cost of this sort of car insurance is closely correlated with how often the vehicle is used. This means that if you drive your car sometimes, your car insurance premium can be lower, but if you drive frequently, your premium can be higher.
Benefits of pay as you drive insurance
The advantages of a pay as you drive car insurance plan for car owners include the following:
- Reduced car insurance rates: Four-wheeler insurance premiums are typically calculated by motor insurance firms using the vehicle’s characteristics (make, model, age, and engine cubic capacity) and additional variables like location and optional deductibles. These elements aid in determining the vehicle insurance provider’s emergency liability. Pay as you drive car insurance plans base your rate on how much you use your vehicle. You may have to pay a reduced premium if the car is used less frequently. As a result, if you don’t use your car often, pay as you drive car insurance prices are lower.*
- Personalized cover depending on preference: With pay as you drive car insurance, you may tailor your insurance protection to meet your needs. This plan offers add-on covers, such as roadside assistance, zero depreciation, etc., in addition to the own damages insurance and required third-party cover. In exchange for an additional premium payment, these add-on covers enhance the standard four-wheeler insurance cover in accordance with your needs and preferences. In addition, if your kilometre limit has been reached, the pay as you drive plan may enable you to upgrade to a larger kilometre slab or recharge your slab limit at any time during the policy’s term. In the unlikely event that you are unhappy with your pay as you drive insuranceplan, you may be able to switch back to your insurer’s conventional car insurance plan.*
- Setup of Free Telematics Equipment: Your motor insurance provider may install a telematics device in your car for free if you choose the pay as you drive car insurance policy. Both the telematics gadget and its installation in your four-wheeler are free of charge. Additionally, the telematics device can keep tabs on your car’s condition and track your mileage according to your selected settings. The gadget may also be able to monitor your driving patterns.*
- Multiple Car Floater Coverage: People who own many cars might consider this option. You can cover all your vehicles with one car insurance policy. * As a result, floater coverage makes the pay as you drive plan a good choice for those who own numerous vehicles by removing the need to purchase separate car insurance plans for every vehicle.
- Third-Party Protection: Pay as you drive insurance offers third-party coverage for the duration of the policy even if your kilometre limit has been reached, which is deemed to be one of its main advantages. The third-party coverage is activated for an entire year once you purchase the policy. *
- Reduced Car Insurance Premiums: When renewing a pay as you drive insurance coverage, certain motor insurance providers additionally offer savings to car owners. You may be offered a reduction in premiums by at least 5% to a maximum of 25%, depending on the insurance provider, thus lowering the car insurance prices. A car insurance calculator can help you calculate the premium and, thus, determine a plan that fits you.*
*Standard T&C Apply
Conclusion:
If you are someone who doesn’t often drive, getting a pay as you drive car insurance can reduce your premiums while offering you a personalised cover, third-party insurance and other benefits. So, do your research and choose your plan wisely.
‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale. ‘
