Pay Car Insurance Premiums Based on How You Drive and How Much You Drive?

by Jonks D. Digital Marketer

The Insurance Regulatory and Development Authority of India (IRDAI) has decided to allow car insurance companies to introduce Pay As You Drive, Pay How You Drive, and floater policies (for people who own more than one vehicle). This policy is determined based on the owner's driving history, i.e., how they drive the car.

The concept of automobile insurance is continually changing. With the introduction of technology, the insurance industry has been racing to meet millennials' intriguing yet demanding needs. According to the guidelines, the general insurance business must keep up with and adapt to the changing demands of policyholders.

Pay Attention To How You Drive

The rate for pay as you drive insurance is determined by how you use your car. The telematics device collects data about your driving by using GPS technology to determine your driving scores, car health, and other variables. This information is then used to produce a driving score that is unique to you.

If it's excellent, then you might be able to lower your insurance cost at vehicle insurance renewal online time and earn a thumbs up for safe driving. While there are no penalties for poor driving scores, the premium savings available to these drivers are also relatively low. These scores can also be used to help drivers improve.

Pay As You Go

Pay as you go or pay-as-you-drive car insurance online works on the simple premise that you should pay less for insurance if you drive less. Because you are rarely on the road, you have a minimal accident risk, and your insurance premium should reflect this.

This insurance allows you to cover your vehicle based on yearly kilometers. You may choose a mileage plan from 3000 to 10,000 km/year based on your driving demands. If you exceed the number of kilometers allowed by your plan, then you have the option of increasing your insurance coverage for that policy year.

The Type Of Coverage

You should know that the coverage you select impacts the cost of your automobile insurance premium. Furthermore, it's legally required to at least have third-party insurance. Other types of insurance are comprehensive coverage, collision coverage, etc.

While third-party insurance covers third-party liabilities solely, comprehensive insurance covers third-party liabilities and own damage. Hence, it's recommended to have comprehensive insurance.

Conclusion

If you go to remote regions for work every day and frequently drive faster, then you are better suited for a basic plan. These new policies are appropriate for consumers who want a car insurance policy that gives them greater flexibility over how much they pay for insurance each year.