New motor insurance that lets you pay premiums only when you drive: Check details here  |  Photo Credit: BCCL
New Delhi: Amid coronavirus outbreak, several insurance companies are introducing ‘pay as you drive’ policies for the customers. This unique usage-based motor insurance, popularly known as ‘Pay As You Drive’, allows customers to pay the premium depending on how many kilometers the car has traveled.
Edelweiss General Insurance announced an app-based auto insurance policy – Edelweiss SWITCH. This unique insurance scheme permits vehicle owners to switch ‘on’ and ‘off’ the policy whenever they want.
The insurance is calculated on the age and experience of the driver, the company said in a statement. Customers can use the mobile application to switch their policy cover ‘on’ and ‘off’, depending on whether they are driving that day.
Shanai Ghosh, ED & CEO, Edelweiss General Insurance, said, “Edelweiss SWITCH is extremely relevant in the current context. It has been developed with the specific needs of today’s customer in mind where you may not use your vehicle regularly or may choose to alternate between your car and two-wheeler. It is a great product for customers, offering, savings, and convenience together.”
So, after the initial premium to activate the policy, the rest of the premium can be paid in monthly installments, thereby adding to the affordability of the product, making it even more useful and relevant in the current environment. Also, while the policy covers accidental damage when it is switched on, vehicles will be covered 24/7/365 against fire and theft, even if the policy is switched off at that time since these incidents can happen even if the vehicle is not being driven.
Tata AIG ‘Auto Safe’
The AutoSafe device is linked to the car as the motor insurance policy becomes active and must be kept throughout the policy period. The device records all information, tracks the distance traveled and generates reports about vehicle health or driving patterns of the policyholder. The information collected is evaluated over time and each driver cum policyholder is allocated points based on performance. The device also contains motion sensor support and generates fuel-saving reports apart from monitoring aspects like hard braking, nighttime driving and acceleration.
Customers will have an option to choose between 2,500 kilometers, 5,000 kilometers, 7500 kilometers, 10,000 kilometers, 15,000 kilometers and 20,000 kilometers.
AutoSafe will be available on all policies offering personal accidental cover of Rs 15 lakh for the owner and driver.
Should you buy it?
It is ideal for the customers who have multiple vehicles and may not use each vehicle as much; therefore, they may not have to pay a large premium amount.
Also, If you are someone who mostly relies on public transport or even use your vehicles rarely due to medical complications, then this will help you cut cost on your vehicle insurance.