In the midst of the coronavirus outbreak, when the whole world is shifting to the culture of working from home and avoiding unnecessary travel, several insurers are introducing “pay as you drive” policies for customers. These exclusive auto insurance schemes allow users to pay the premium only on the days they use the vehicle or on the distance they travel.
Unlike the traditional auto insurance policy, policyholders will be able to personalize their premiums. In a regular auto insurance policy, the customer needs to pay the premium based on the model of the car. Here, they will have the option to choose prizes according to their driving habits. This means that buyers must pay the premium as much as they drive their cars.
Here are two “pay as you drive” auto insurance policies – Edelweiss SWITCH and Tata AIG Auto Safe.
Recently, Edelweiss General Insurance announced an application-based auto insurance policy – Edelweiss SWITCH. This exclusive insurance scheme allows vehicle owners to activate and deactivate the policy whenever they wish.
Insurance is calculated based on the driver’s age and experience, the company said in a statement. Customers can use the mobile app to enable and disable policy coverage, depending on whether they are driving that day.
However, “vehicles will be covered year-round against fire and theft, even if the policy is turned off at that time, as these incidents can happen even if the vehicle is not being driven,” said Edelweiss General Insurance. The policy will only cover accidental damage when the insurance is activated.
“This driver-based insurance will mean lower premiums for policyholders, as they will only pay according to usage,” said Shanai Ghosh, ED & CEO of Edelweiss General Insurance.
In addition to low premiums, SWITCH insurance schemes cover multiple vehicles under one policy.
Tata AIG ‘Auto Safe’
The AutoSafe device is linked to the car when the auto insurance policy becomes active and must be maintained for the duration of the policy. The device records all the information, tracks the distance covered and generates reports on the health of the vehicle or driving patterns of the insured. The information collected is evaluated over time and each driver insured receives points based on performance. The device also contains motion sensor support and generates fuel economy reports, in addition to monitoring aspects such as sudden braking, night driving and acceleration.
Compared to conventional policies, buyers will benefit from Tata AIG’s flexible kilometer-based package. Customers will have the option to choose between 2,500 kilometers, 5,000 kilometers, 7,500 kilometers, 10,000 kilometers, 15,000 kilometers and 20,000 kilometers. If they exhaust all kilometers within the policy period, they can purchase additional kilometers, opting for the option of additional kilometers.
To promote safe driving, this policy offers extra kilometers for good behavior when driving at the time of renewal. The less you drive, the lower the premium you have to pay.
AutoSafe will be available on all policies that offer personal coverage against accidents $$15 lakh for the owner and the driver.