Pay As You Drive Car Insurance
Pay as you drive Insurance is a new concept, that of which you only pay for how many KM’s you use on your car when it comes to comprehensive insurance. The potential savings on such a method of payment will really help some people who only use their cars on odd occasions due to cost of running a car and petrol prices associated.
This method of car insurance has been popular for years in the UK, and has finally landed on our Australian shores!
Save Money on Car Insurance
With Pay As You Drive, if you drive less, you pay less. Up to 60% less than traditional comprehensive car insurance is what is currently advertised!
Pay as you drive insurance if for people who:
- Drive less that the average person in your neighbourhood
- Use public transport instead of commuting with your car
- Work close to your home
- Have a second car that you don’t drive often or far
Whats the catch with PAYD insurance?
You’re thinking, “it sounds too good to be true”. Pay As You Drive makes sense from a commercial perspective. All car insurance should have evolved to this model by now.Most of the bad things you are insured for can only happen when you are driving your car, like crashing into another car for example. If you don’t drive, those things cannot happen.
So the more a person drives, the more an insurance company must charge for that policy in order to pay claims. When you buy an “Traditional” car insurance product, people who don’t drive a lot, subsidise the people who do drive a lot.With PAYD you pay for the kilometres you plan to drive. That means good drivers who drive less than others in their neighbourhood no longer have to subsidise the people who drive a lot.
