CAR INSURANCE

 CAR INSURANCE

Choosing the right car cover
Should you opt for PAYD or usage-based car insurance policy?

TRADITIONALLY CAR insurance would come in the form of standardised plans. So, an individual user’s driving needs and habits would be irrelevant to his/her premium due. Let’s say that you are someone who typically carpools or travels by cab. The law would still need you to buy a regular motor insurance plan for the year. So, even if your car hits the road only about once a year, you would nonetheless be required to pay a hefty premium.

But motor insurance has become motor customer-friendly over the years. Now, car owners have the option of choosing their insurance plan based on their usage. As you can imagine, this comes with a verity of benefits for policyholders. Lets us take a look at some of  them

 

Lower insurance premium:

It is only fair that your insurance premium is calculated based on how often you need to drive your car. For instance, if you live in a relatively smaller city, chances are that you drive a maximum of 5,000 Km. There is no reason for you to pay the same premium as someone who drives 15,000 Km would pay.

In such a scenario, a plan like Reliance’s Pay As You Drive (PAYD) is deal for you. It comes with four predefined driving ranges:2,500 Km, 5,500 Km, 7,500 Km, and 10,500 Km. Even if there is one add month where you expect to drive more than usual, you can easily increase their driving limit as needed. If your driving limit usually sits somewhere around 15,000 Km, then Digit’s PAYD plan might be a sensible choice for you.    

Customisable plans:

In today’s age of hyper-personalization, a remote control of sorts even for insurance makes perfect sense. This is where a plan like a kotak Meter (Switch On/Off) Cover comes in. This plans allows you to turn off your own-damage policy when not driving. For every continuous 24 hours period in which the Own Damage-cover is ‘Off’, you will be rewarded with one bonus day. Policyholders can even receive cash back at the end of their policy period. This gives a more sustainable touch to car insurance.

Points for driving well 

The new PAYD model enables taping of a policyholder’s driving habits. The user’s plan can then be customized accordingly. So, someone who tends to follow driving rules gets a plan with lower premiums. This calculation is based on the information received from vehicle’s GPS tracker. There are algorithms in place that recommend the appropriate premium for each driver. This also factor into whether or not the user respect traffic signals, and or drives at a safe speed.

Another great add-on to have is Pay How You Drive. This enables tapping of a policyholder’s driving habits. The user’s plan can then be customized accordingly.

 

For multiple vehicles

If you own more than one car, you would typically have to pay a higher premium as your vehicles would be insured under two separate policies. You would also be required to fill out and maintain multiple policy documents for this. The PAYD model solves this problem with floater policies, i.e. a single combined policy for multiple vehicles. This way, you have to pay a lower premium as the benefits of your single plan are valid for multiple vehicles, even two- wheelers. This new model is efficient in terms of time, money, and effort

The Pay As You Drive model is an evolved, more customer-friendly approach to insurance. It is a must- buy for anybody who owns a vehicle.

For More Details: Pooja Manoj Gupta, visit www.giia26.com
Email: pmgiia26.com Mobile 9868944340