No, a “Pay As You Drive” (PAYD) will not make car insurance policy expensive for Indians. Instead, a PAYD policy will significantly reduce your car insurance premiums, allowing you to save more. Also, there are several benefits of a PAYD insurance policy that you must be aware of before choosing one

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Benefits of PAYD Insurance Policy

The benefits of “pay as you drive” policies are as follows:

• It offers several attractive discounts based on the number of kilometres you drive.
• You can only avail this offer after uploading a video of your car’s model.
• Occasional drivers can benefit immensely from this plan.??
• You can save extensively on your car insurance premium after opting for a PAYD insurance plan.

Additionally, it is essential to decide how much benefit you can reap from a PAYD insurance policy.?

People Who Can Benefit from PAYD Car Insurance Policy

The following people can benefit immensely from a PAYD policy:

• Seasonal drivers drive their cars for significantly less duration than regular drivers.
• Car owners who prefer travelling via public transport and rarely use their personal vehicle.
• People who own multiple cars but do not use all of them at the same frequency.
• Individuals who keep travelling out of station and do not use their personal car often.?

The working of a pay as you drive car insurance insurance policy is slightly different from a regular car insurance policy.?

How PAYD Insurance Policies Work

A PAYD policy works as follows:

• Car usage declaration: You will need to declare an approximate number of kilometres for which your car might travel based on the purpose and usage of the vehicle.

• Provide a telematics reading: Telematics is the process of tracking the exact number of kilometres a car travels. There are several insurers who ask their customers to provide telematics readings as proof of how many kilometres their car has covered. However, some companies may not ask their customers for telematics proof.?
• Provide an odometer reading: A customer must provide an odometer reading to their insurer as proof of the number of kilometres a car travels. Accordingly, the insurer decides the premium for your PAYD policy.

Once you have noted down the benefits and working of a PAYD policy, you can proceed to purchase one if it is beneficial for you.

Steps to Buy a “Pay As You Drive” Insurance Policy

Below are the steps that you must follow to buy a PAYD Car Insurance Policy:

Step 1: Visit the official website of a company that offers a Pay As You Drive Car Insurance.

Step 2: Go through the features, benefits, inclusions and exclusions of the policy carefully.

Step 3: Input the required details of your personal car.?

Step 4: Make the necessary declarations that the insurer demands.

Step 5: Upload the essential documents that the insurer asks.?

Step 6: Select the plan and add-ons as per your vehicle usage.

Step 7: Complete the payment process as instructed.

Step 8: Once done, download the insurance policy documents.

You must keep these documents safely for future use. Additionally, it is a must to consider certain factors before selecting the right financial institution for car insurance.

Factors to Consider Before Choosing a Car Insurer Company

Below are the factors that you must consider before choosing an insurer for your car insurance policy:

• Easy policy renewal

Before selecting a company, you must go through its website thoroughly to check the insurance renewal steps. This is immensely important as if the insurance policy renewal is too complicated or time-consuming, you must think twice before purchasing it from that company.?

• Minimal documentation

Opt for an insurer that requires you to submit minimal documentation. This would save you time as you do not have to go around collecting many documents. Additionally, this will reduce the chances of errors during the application and claiming process of the policy.

• Several add-on offers?

Choose a company that provides multiple offers on your four-wheeler insurance policy. Thus, you can choose the right insurance policy offer to reap immense benefits in the future.?

• Customised insurance policy

It is a must to select an insurance company that equips you with a plan which is perfectly suitable for your need. This helps you to maximize the benefits from your policy, as per your income and lifestyle.

• Good market reputation

Always go for popular insurance providers that have a good market reputation. This will ensure that you do not end up being a victim of fraud. At the same time, you will be sure that you will be able to file a claim efficiently and receive the claim amount on time.

Fintech has been powering the insurance industry not only to grow its reach, but it has been helping them come up with innovative products like pay as you drive insurance. And, now that you have a clear idea about the benefits of a PAYD policy and how it works, you can decide whether it is beneficial for you. Additionally, you can calculate how much discount you can get on your premium after opting for a PAYD insurance policy.?