Pay as You Drive Car Insurance - Features and Benefits

Pay as you drive insurance plan is a comprehensive car insurance policy that will function as per the driving habits of the owner and driver. The most cost-effective plans are crafted as per the customer requirements for different vehicles. 

Based on the number of kilometers the premium under this plan is created. It is a comprehensive insurance plan with added discounts on premiums as per the car usage. 

What is included in Pay as you drive car insurance?

Pay as you drive insurance plan will cover all basic things that a comprehensive car insurance plan will cover. Here are the inclusions which are added to the car insurance plan. 

• Emergency medical cover

• Natural disaster coverage

• Own Damages cover from an accident

• Vehicle damages and third-party injuries under third-party liabilities cover

• Human disasters coverage

• Theft coverage

• Fire damages coverage

• 24/7 roadside assistance cover

To whom is it beneficial?

This insurance cover is most beneficial for those who have calculated driving plans. How much you drive your car, the way you drive and other factors will determine the premium and benefits coverage. If you are not using the car daily then paying as you go car insurance is best for you. 

If you are using the car daily and you travel in the car very often for too long distances then this insurance plan is not beneficial for you. If you are an expert driver with a good track record then pay as you drive is most beneficial for you.

If the driver is not experienced enough and the track record is not good then pay as you drive may not be recommended. 

How does it work?

Pay as you drive is similar to any other car insurance, here the only difference is that kilometers slab on the insurance plan is applicable. The insurance policyholder is given a choice of kilometer slabs. Based on the requirement the policyholder can select the slab and the insurance premium amount is decided. 

The kilometer slab will have the number of kilometers the driver is planning to travel. The basic slab for pay as you drive car insurance is less than 3000 kilometers. Apart from these other kilometers range between 3000 to 5000 kilometers and more than 5000 kilometers. The number of kilometers may vary depending on the insurance companies. 

After you select the driving slab and pay for the insurance then the company will make you install a telematics device in your car. This device will be helpful to track car usage, the device will be connected to a telematic app. The insurance provider and the insurance policyholder will get the number of kilometers that car is driven.

Click here for Car accident history check while buying Used Car

Advantages of Pay as you Drive Insurance

The advantages of Pay as you Drive Insurance are as follows.

1. Basic Plan tenure

2. Usage-based Insurance

3. Comprehensive cover

4. Multi Car Insurance

5. Customisation

1. Basic Plan tenure

Pay as you drive insurance plan is similar to a comprehensive insurance plan. In the UAE, pay as you go car insurance is valid for a period of one year. They come with a grace period of one month for renewal. You can carry regular car insurance as you do with a comprehensive insurance plan. 

2. Usage-based insurance

Pay as you drive insurance plans are usage-based car insurance plans. If you are using your car less during a particular period you can choose to pay the premium during the usage period. This means you can pay an insurance premium when you are using the car and vice versa. 

3. Comprehensive Cover

With a low car insurance premium, you can pay as you travel. The offers and coverage are as per the comprehensive plans. The coverage and benefits are provided as per the comprehensive plan. It is a normal insurance plan with a discount benefit.

4. Multi Car Insurance

If you are having multiple cars then you can link a car insurance policy for all of them. The process of linked pay as you drive is the same as a regular multi-car insurance plan. This plan is most beneficial when you have multiple cars and you do not use them all on a regular basis. You will pay for insurance only when you use the car. 

5. Customisation

The great advantage of pay as you drive car insurance is customisation. The option to get customisation is open for everyone as a policyholder can select add-ons and pay as per driving needs and habits. 

Take away

This insurance policy will help you to cut down the insurance expenses with cost-effectiveness. The policyholder will pay less compared to other car insurance policies. Paying less and getting more benefits is possible with pay as you drive car insurance. The only requirement is the driver should have a good track record and be a good driver and only then this insurance plan will be result oriented.