No one looks forward to spending money on something that they don't use. Usage based motor insurance by Pay As You Drive is starting to become an increasingly popular insurance policy for those who journey less than 1500km each month. With this unique scheme you only pay for the km's you travel rather than for when your motor vehicle is safely locked up in your car port.
Acquiring this insurance policy is very simple. The only real prerequisites are that you are 25 years or older, in the possession of a driver's licence older than a year and your travels must be less than 1500 kilometres monthly.
The principle behind usage based motor insurance is to accommodate individuals who are not frequent travelers. That is why, the different Pay As You Drive plans are further split to be even more fair to these types of clientele and range from the Drive500 DrivePlan to the Drive 1500 DrivePlan, where the prefix is the maximum number of kilometers allowed every month. Naturally the lower the kilometers, the lower the monthly premiums.
Seeing that usage based motor insurance is kilometer based, a data collection unit needs to be installed in an insured's vehicle. This device will keep a record of the month-to-month kilometers travelled and will then determine whether the policy holder has travelled less than the allocated month to month distance, or if an additional "per kilometer" charge should be levied. You will receive a detailed breakdown of your travels via electronic mail every month.
As with many other policies, the usage based motor insurance policy also offer added benefits. This range from accidental death cover to third party liability cover and an assistance service advantage. Talk to your insurance agent or broker about the different advantages and make sure that you understand the value of each advantage, as well as the associated stipulations.
Insurance plans are all about associated risk. If you don't travel extensive distances fairly often, you are not as big a risk as the person that is on the road 7 days a week - don't allow your insurer to hold you answerable for other peoples' risk!
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