Did you know you can pay insurance premiums per distance travelled?
Yes you can!
If you drive less than the average person., then you should pay less for your car insurance. We can pay by the second for cellphone use and purchase videos on demand – so really, how far-fetched is distance-based auto insurance? Not far-fetched at all and fair on top of that. A policy for someone clocking 30,000 kilometers annually may not be fair for a motorist who only drives 6,000 kilometers.
Mileage has historically been underweighted in determining rates, because it wasn’t easy for an insurer to verify how much a customer actually drove, but technology is changing that. Mileage can now easily be checked via tamper-proof odometers, electronic transponders and GPS.
A small device inserted into a port that exists on the vast majority of cars, will collect information about how an individual drives. Not only how far, but also how fast and the time of day they drive. How fast? Yes, be warned!
Key benefits of Pay As You Drive insurance
- Pay As You Drive is a comprehensive car insurance
- If you don’t use your car much you can save on car insurance
- Various mileage options to choose from – depending on how much you travel
- You only pay for the distance your car travels each month
- If you don’t use all the mileage you’ve bought, it is saved for another day
- If you exceed the mileage, you use what you have saved up
Who will benefit from Pay As You Drive insurance?
- Housewives who only drop and fetch children at school and make the odd trip to the shops.
- Senior citizens who don’t go out often.
- Drivers living close to work.
- Policies for second vehicles that isn’t used for social driving.
- Students living close to places of study.