[hareshjethwani]

Bharati AXA has launched motor insurance based on distance driven.
Would be interesting to see the difference between this and the regular insurance.

Under this product, a customer pre-declares vehicle usage for a period of one year. The insurance premium will be calculated dynamically as per the pre-declared distance in km. The customer can choose from three slabs - 2500 km, 5000 km and 7500 km - as per his/her usage need.

https://auto.hindustantimes.com/auto...146584805.html

[GTO]

Mod Note: Thread moved to the Insurance section!

[venom_valak]

Hi folks,

I have my car insurance renewal coming up and I came across this option of Insurance. I had a few questions on this -
- Has anyone on the forum opted for Pay as you drive insurance?
- Is it really beneficial?
- Which provider is best in this space?
- Does the telematics device log GPS coordinates? Any privacy issues?

[ghodlur]

Originally Posted by venom_valak

- Has anyone on the forum opted for Pay as you drive insurance?
- Is it really beneficial?
- Which provider is best in this space?
- Does the telematics device log GPS coordinates? Any privacy issues?

I have recently opted for the "pay as you drive" option of motor Insurance for my Harrier for 2025-26. I have set a limit of 10.5k kms in this option. I feel this suits me based on my annual driving. I got the insurance from Reliance along with the usual add ons of zero dep, key protect and RSA, the process was smooth with an inspection and recording of the odo reading, payment done online and policy issued within 30 mins.

This policy does not need a Telematics device to be installed in the car. 3 months before the renewal next year I will need to upload the odo readings.

[Rahul Bhalgat]

Originally Posted by ghodlur

I have recently opted for the "pay as you drive" option of motor Insurance for my Harrier for 2025-26.

Can you please throw some light on the following:

Cost comparison between "pay as you drive " and conventional lumpsum prepaid annual insurance.

Will your km lapse if not used?

What if a customer rolls back the odometer?

[AMG Power]

Third party insurance cannot be taken on the basis of kms as it is a statutory requirement.

New cars need to have insurance for 2 years and renewals need to be for a year.

Wonder how the differing terms are treated.

Will the 3rd party also lapse if the kms are exceeded? That would then be a violation if the car is taken onto the roads.This would probably work if they have a separate policy for third party cover.

[ghodlur]

Originally Posted by Rahul Bhalgat

Can you please throw some light on the following:

Cost comparison between "pay as you drive " and conventional lumpsum prepaid annual insurance.

Will your km lapse if not used?

What if a customer rolls back the odometer?

The cost of the Pay to Drive option as against a vanilla comprehensive Insurance (OD + TPL) is 30% lesser.

If the Kms go unused and if the policy is renewed then the kms unused gets carried forward to the next policy year. For eg I opted for 10.5k kms and if i use only 9k kms then the 1.5k kms unused will be added to the next years kms opted for. If I continue the policy for 10.5k kms next year as well then the eligible kms would 12k kms although I will pay the premium for 10.5 k kms only.

Similarly if the kms are anticipated to be increased in the policy year, then an additional top up kms can be opted for by paying a nominal sum. I am told for a top up of 2k kms the cost would be Rs 1000.

I am not sure about the customer rolling back the odo and the Insurance co being able to detect that. Will need to check with the Insurance co. I dont intend to do that as my running is anyways low.

Originally Posted by AMG Power

Third party insurance cannot be taken on the basis of kms as it is a statutory requirement.

New cars need to have insurance for 2 years and renewals need to be for a year.

Wonder how the differing terms are treated.

Will the 3rd party also lapse if the kms are exceeded? That would then be a violation if the car is taken onto the roads.This would probably work if they have a separate policy for third party cover.

The policy which I opted for covers the TPL as well. The TPL is not dependant on the Kms opted for, hence any kms lapsed will have no effect on the TPL terms and conditions.

FYI for new cars the TPL needs to be brought for 3 years in advance when buying a new car with 1 year Own damage liability.