Car Insurance: If you have a car, it is very important to insure it. Keeping in mind the needs of consumers, insurance companies are also improving their policies and products. Car owners now have the facility to tailor their insurance scheme as per the usage of their vehicle. Especially if a driver drives occasionally but maintains safe driving rules while driving, substantial savings can be achieved on car insurance premiums. Similarly, there is ‘pay as you drive’ cover in car insurance. This consumer-friendly coverage, offered under the regulatory rules of the Insurance Regulatory and Development Authority of India (IRDAI), enables one to pay only for actual usage.
What is pay as you drive car insurance
Pay as you drive is a great car insurance scheme that helps you save money by adjusting the premium based on the number of kilometers you drive. Working on a discount system, this add-on adapts to your driving skills. Choosing payment methods while driving means you pay only for the kilometers you plan to cover in a year, resulting in lower premium payments. However, if you run out of available kilometres, insurers usually give you the option to extend your coverage by more kilometres. Reliance Limit Sure Pay As You Drive cover offers a ‘Top Up Limit’ facility to ensure that you are covered for the remaining policy term. However, if you drive less than your chosen kilometres, the remaining distance can be carried forward to the next policy year.
How Pay As You Drive Car Insurance Works
In this cover you will have to pay only for the number of kilometers you drive. Suppose if you usually travel around 5000 kilometers annually, even if you own multiple vehicles. Whether you use public transport or are generally conscious of your car usage, Pay As You Drive gives you coverage exclusively for those 5000 kilometres. It comes with a much lower cost than a standard car insurance plan. If you go beyond this limit, topup is easily achieved.
What are the benefits of Pay As You Drive cover
Reliance Limit Sure Pay As You Drive offers a range of benefits, designed to simplify the experience for car owners who prioritize efficiency in the use of their vehicle.
Driving distance selection: Pay While You Drive entitles you to choose the distance to be covered in the policy year, starting from a certain kilometer and expanding in increments of 1,000. Pay as you drive entry point offers 2500 kms. You only have to pay specifically for the kilometers you choose.
Premium savings in low mileage: Paying only for the selected distance reduces your premium proportionately if fewer kilometers are selected. This means that if you drive less, your premium reduces accordingly.
Remaining kilometer extension: You do not need to worry about losing the remaining kilometers. With As You Drive any distance remaining within your kilometer limit can be seamlessly carried forward to the next policy year during renewal.
Top-up options for Extra Kilometers: If you run out of initially selected kilometers, Pay As You Drive allows you to easily top up and increase your coverage, ensuring continued protection.
Pay As You Drive Car Insurance Policy Features
Pay as you drive car insurance policies generally last for one year, with the premium determined by the chosen usage slab covering only the kilometres. There is an opportunity to opt for add-on covers to increase flexibility and enhance your car insurance coverage. This policy provides comprehensive coverage for own damage and third party liabilities.
Why pay as you drive car insurance is important
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This is for people who don’t drive often but pay the same premium as heavy users.
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Ideal for senior citizens or elderly persons who drive occasionally.
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Suitable for college students in the process of gaining driving experience.
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Beneficial for households with multiple cars, especially when one is used more often than the others.
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A suitable option for individuals renting a car and requiring short-term insurance coverage.
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Perfect for those working from home or those who live in remote areas or at least drive.
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Usually a practical option for residents of small towns with annual car usage less than 10,000 km.