Pay As You Drive Insurance: Is your vehicle running less? Then you can get insurance at less cost, understand how?

Many people who drive vehicles feel that the running of the car is less but still, why are they paying a high insurance premium? Today we are going to explain to you about such a Vehicle Insurance Policy which is especially for those people whose car has less running.

The name of this insurance policy is Pay as You Drive Insurance. Everyone explains one side of the coin but let us explain to you the advantages and disadvantages of this insurance policy i.e. both sides of the coin.

Santosh Sahani, Motor Head of Kataria Insurance, while explaining about Pay as you Drive insurance, explained that under this insurance policy, the insurance company offers options of 2500, 5,000, and 7,000 km to the customers. If you feel that you do not drive more than 2500 km in a year, then you can reduce your insurance premium by purchasing this insurance policy.

Similarly, if you feel that you need a plan of 5 or 7 thousand kilometers, then you can also buy these plans. Overall, the only benefit of this insurance policy is that you can reduce your premium according to the running of your vehicle.

These companies have a Pay as Drive Policy.

If you think that every insurance company has such an insurance policy, then it is not so, there are only a few companies in the market that offer such a facility to the customers. Santosh Sahani said that companies like ICICI and Reliance have such plans which you can buy. ICICI has plans of 5000 km and 7000 km, while on the other hand, Reliance has plans of 2500 km and 5000 km.

disadvantages along with advantages

You have understood the benefits but it is also important to understand the disadvantages, it is good that the premium is being saved but this policy will expire after 5000 km.

If explained in simple language, the problem in this policy is that after buying the policy, after a few months you feel that the running of your car can be more than 5000 kms, then you will have to renew the policy only after completing 5000 kms. If you do not renew the policy and if the car gets damaged in a road accident after 5000 km, then you will not get a single penny of claim from the insurance company.