Pay As You Drive

Pay As You Drive

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Insure Your New Car

Customers Served:
14Cr+
Network Garages:
9,277
Locations:
140+

What is Pay As You Drive Insurance?

The Pay As You Drive Insurance from SBI General Insurance gives you more freedom and lower costs when you cover your car. Your comprehensive car insurance policy price is based on how often you drive your car. This means that the less you drive, the less you pay. PAYD insurance is great for people who don't use their cars very often because it helps them save money on insurance while still giving them all the safety they need.

Benefits Available As Per You Drive

Pay As You Drive” (PAYD) insurance offers a novel way to match rates to your real driving behaviour. It provides unmatched cost-efficiency for occasional drivers and is meant to encourage smart driving.

➔Customised Premiums
PAYD insurance guarantees that you only pay for the actual distance you drive, with prices that are customized to fit your needs.

➔Cost-Effective for Low Mileage Users
This coverage can lower your insurance premiums considerably if you drive seldom or mostly take public transportation.

➔Supports Eco-Friendly Practices
Reduces your carbon impact and helps you save money by encouraging less driving.

➔Transparency with Mileage Tracking
The insurance, which has sophisticated telematics, provides you with detailed information about your driving habits and policy usage.

➔Flexible and Adaptable
Because it makes altering coverage levels or mileage restrictions simple, it's perfect for those whose driving habits change over time.

Key Features of Pay As You Go/Drive Insurance Policy

Pay As You Drive Insurance is a new way to get car insurance that lets you change your rates based on how much you drive. This lets you save money on your insurance.

Feature	Description
Usage-Based Premium	The premium allows more reasonable pricing as it is directly related to the kilometres you travel.
Lower Premiums for Low Mileage	Perfect for those who don't travel often as it provides lower rates for less frequent usage.
Customisable Coverage	Customize the coverage to meet your unique requirements and driving habits, providing you with more flexibility.
Environmentally Conscious	Promotes sustainability by encouraging less driving, therefore lowering carbon emissions.
Comprehensive Protection	Complete protection, comparable to conventional all-encompassing auto insurance, with reduced rates added advantage.
Transparent Pricing	A simple, straightforward premium structure free of hidden costs offers openness and simplicity of comprehension.
Flexible Policy Terms	To ensure a perfect match for your needs, modify the terms of your insurance according to your driving patterns.

How Does Pay as You Drive Insurance Work?

Based on how much you drive, Pay As You Drive Insurance (PAYD) provides a flexible and affordable option for auto insurance. Here's how it operates:

Mileage Tracking: The amount of kilometres your vehicle is travelled throughout the policy period is tracked using an odometer reading or telematics device. Your premium will go up the more you drive and vice versa.
Premium Calculation: Based on your actual consumption, your premium is modified. Since they only pay for the coverage they require, low-mileage drivers benefit from lower rates, which lowers insurance expenses.
Flexible and Tailored Coverage: PAYD guarantees a customised insurance plan by letting you select coverage according to your driving patterns, whether you're a regular user or a low-mileage driver.
Claims Process: In the event of a claim, the procedure is still the same as for regular insurance, but your driving information (gathered through telematics) could be taken into account while evaluating the claim and figuring out your eligibility for coverage.

Why Should You Buy SBI General’s Car Insurance Policy?

Reasons to Choose SBI General’s Car Insurance:

➔Comprehensive Coverage
Defend your car from a variety of threats, such as theft, natural catastrophes, accidents, and third-party liability.

➔Cost-Effective Add-Ons
Adjust coverage to meet your needs by adding reasonably priced extras like engine protection and zero depreciation to your insurance.

➔Easy Claims
Take advantage of SBI's high claim settlement ratio and streamlined claims procedure, which guarantee prompt settlements in an emergency.

➔A Cashless Network of Garages
Through SBI General's wide network of partner garages around India, you may get repairs without having to pay upfront.

➔Brand Reliability
This coverage is a safe option for your car insurance needs since you can rely on SBI's stellar reputation for dependability and customer care.

Benefits of SBI General’s PAYD Insurance Policy

The “Pay As You Drive” policy from SBI General offers affordable premiums based on real usage, redefining car insurance.

Usage-Based Savings: PAYD lets you pay premiums directly corresponding with your mileage, therefore saving money for occasional drivers.
Modern Telematics: The insurance tracks your mileage using state-of-the-art technologies to provide analysis of your driving patterns.
Best for City Drivers: Choosing this policy will help urbanites with low driving requirements and maximum savings.
Encourages Responsible Driving: Promotes road safety by encouraging responsible driving and modest and safe driving practices, therefore lowering accident risk.
Easily Adjustable Coverage: Enables policyholders to change mileage restrictions as their driving demands change.
Convenient Policy Renewal: Provides flexibility to change coverage depending on evolving driving demands, therefore guaranteeing ongoing protection.

Who Should Buy ‘Pay As You Go/Drive’ Plan?

Certain types of drivers will find Pay As You Drive insurance to be the best choice because it is flexible and saves them money. After reading this policy, these people should think about it:

Low-Mileage Drivers: People who drive a car for short distances or don't drive it very often can save a lot on insurance with PAYD because they only charge you for the distance you actually drive.
Occasional Drivers: PAYD lets you pay less for your insurance when your car is parked for long periods of time, like on the weekends or during holidays. This way, you don't have to give up coverage when you do drive.
City Commuters: PAYD is good for people who take public transportation to get to work every day and only use their car for chores or weekend trips because it gives lower rates for low usage.
Eco-Conscious Drivers: For drivers who care about the environment, PAYD offers savings for low-mileage driving to encourage people to drive less and leave less of a carbon footprint.
Safe Drivers: If you have a good driving record and always drive safely, you may get extra perks like lower premiums or rewards, which will lower the total cost of your insurance even more.

Related Blog: Best Mileage Cars for Your Daily Commute

How To Buy Pay As You Drive Policy?

With this streamlined process, it's easy and quick to get Pay As You Drive insurance from SBI General. This way, you only pay for the miles you drive.

Step 1: Examine Your Options with an Insurer
Check the websites of insurers like SBI General Insurance to see whether they have Pay As You Drive options.
Step 2: Examine Policy Specifics
Make sure the insurance meets your needs by reviewing its features, benefits, inclusions, and exclusions.
Step 3: Enter Personal and Vehicle Information
To start the procedure, enter your personal and vehicle information on the insurer's website.
Step 4: Submit Required papers
Upload the required papers, including your driver's license, registration, and odometer reading.
Step 5: Select a Plan
Based on your driving preferences and coverage needs, choose the appropriate car insurance policy and any applicable add-ons.
Step 6: Make the Payment
Use the various payment methods, such as cards or net banking, to finish the online payment procedure.
Step 7: Download Your Policy
For verification and future use, download the policy paper or get it by email after making a payment.

What Happens If the Declared Car Usage Limit is Exhausted?

If you go over the declared mileage cap, your insurance might:

Premium Increase: In order to account for the extra miles you've travelled, your premium may increase.
Additional Fees: If you go above the limit, certain insurance may charge you more.
Sustained Coverage: The terms may alter, but the coverage is still in place.
Impact on Claims: Going above the cap may have an impact on how claims are evaluated.
Renewal Adjustments: When your policy is renewed, your mileage cap and premium might change.

What Is Covered in Pay As You Drive Insurance?

Third-Party Liability: This covers any harm you cause to another person, including damage to their belongings and injuries to human bodies.
Accident and Damage: Comprehensive security for your car in case of an accident, fire, theft, or natural disaster.
Theft and Vandalism: This feature protects your car from being stolen or damaged.
Personal Injury: Some plans cover injuries you get in an accident as a personal injury.
Accident Coverage: This covers accidents or other unexpected events.

What Is Not Covered in Pay As You Drive Insurance?

Understanding PAYD insurance's restrictions is crucial, even if it has many benefits. Knowing what exclusions apply guarantees that you are ready and capable of making wise judgments.

Mileage Overruns: Exceeding a pre-agreed distance may result in extra costs or cancel coverage.
Routine Wear and Tear: Normal wear and tear damages, such as mechanical problems or part ageing, are not covered.
Geographic Limits: Driving outside established zones may invalidate claims.
Negligent Driving: Accidents brought on by careless actions, such as drunk driving, are not included.
Non-Inclusive Add-Ons: Engine protection and roadside assistance require additional purchases.

Difference Between Pay As You Drive (PAYD) and Comprehensive Car Insurance

To help you understand the main differences between Comprehensive Car Insurance and Pay As You Drive (PAYD) insurance, here is a clear outline:

Feature	Pay As You Drive (PAYD)	Comprehensive Car Insurance
Premium Calculation	Determined by driving behaviours and distance travelled.	Fixed charge depends on automobile model, value, and other parameters, independent of usage.
Mileage Flexibility	Allows for flexibility; you just pay for the actual miles driven.	The premium is fixed regardless of distance, thus there is no flexibility.
Policy Coverage	Depends on your driving habits and covers both own damage and third-party liabilities.	Covers third-party responsibility as well as own damage, irrespective of how much you drive.
Ideal for	Drivers who seldom drive or with low miles.	Drivers who desire fixed coverage or who use their vehicles a lot.
Cost Efficiency	Economical for drivers who don't utilize their cars as often.	Due to its unlimited mileage coverage, it may cost extra.
Usage Monitoring	Need an odometer reading or telematics device to track mileage.	All driving actions are covered; no tracking is done.

Read our blog: Understanding First-Party and Third-Party Coverage

Things to Keep in Mind Before Purchasing Pay as You Go/Drive Insurance Cover

Before purchasing Pay as You Drive insurance, take into account the following factors.

Multi-Car Ownership: Consider how each car's usage affects your PAYD premium. Any car's mileage might raise costs.
Car Usage: Evaluate your automobile usage. PAYD insurance is appropriate for infrequent drivers or those with low mileage routines.
Seasonal Variations: Holiday road excursions may increase your automobile usage, which may affect your policy and premium.
Limits on Insurer Mileage: View the insurer's mileage restrictions and how exceeding them may affect your rates and coverage.

Frequently Asked Questions

Yes, you will need:

Vehicle Registration Certificate (RC)
Driver’s License
Aadhar Card / Address Proof
Previous Insurance Policy (if applicable)
KYC Documents

You can claim for:

Accidents, theft, or fire damage
Third-party liabilities
Natural disasters (like floods or earthquakes)

Claims are subject to mileage limits being adhered to.

Yes, most insurers install a telematics device or track your odometer readings to monitor your driving distance and calculate premiums.

It’s great for low-mileage drivers as it offers lower premiums based on actual usage. For frequent drivers, a traditional policy may be more suitable

You’ll need:

Vehicle Registration Certificate (RC)
Driver’s License
Aadhar Card/PAN Card
Address Proof
Odometer reading

Notify your insurer immediately after the incident.
Submit documents (FIR, accident report, damage photos).
The insurer will verify the mileage and process the claim.
Once approved, the claim is settled.

Disclaimer: The above information is indicative in nature, for more details on complete coverage and terms and conditions, please contact our nearest office and also read the policy document and sales brochure carefully before concluding a sale.

SBI General Insurance and SBI are separate legal entities and SBI is working as Corporate Agent of the company for sourcing of insurance products.

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