Drive Less, Pay Less: Is Pay-As-You-Drive Insurance Right for You?
· Automobile · Business Standard
Pay-as-you-drive motor insurance policies charge premiums based on the actual distance a vehicle travels rather than a flat annual rate. This usage-based model suits motorists who use their cars infrequently, log low annual mileage, or rely primarily on public transport for daily commutes. Insurers typically track distance using telematics devices installed in the vehicle or through smartphone apps connected to the odometer. While low-mileage drivers can secure substantial savings on their comprehensive coverage, individuals with heavy daily commutes may end up paying more than traditional bundled plans. The coverage structure remains subject to specific policy terms set by individual general insurance providers operating in the market.
Why it matters
Motorists with low annual mileage can significantly lower their annual vehicle insurance costs by switching from traditional flat-rate plans to distance-based coverage.
Read the original report — Business Standard
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