Continue reading below to find out more about AXA car insurance renewal and all the key factors related to car insurance renewal in the UAE.
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Ensuring your ride does not always come cheap, especially when you want to get coverage that is ideally comprehensive. Since finding cost-effective insurance plans is an everlasting need, new and better car insurance options keep popping up every now and then. One of these new and more cost-effective types of car insurance plans is the pay as you go car insurance. A highly customised type of car insurance, pay as you go or pay as you drive insurance plans are perfect for folks who require comprehensive yet easy-on-pocket car insurance plans.
As the name suggests, pay as you drive insurance plans are a type of comprehensive car insurance policy that works as per the driving habits of the owner-driver and the usage. These plans are highly cost-effective and can be customised individually for each vehicle under consideration. The premium for these plans is majorly decided as per the number of kilometres you drive your car. Think of it as a normal comprehensive car insurance plan but with an added discount in the premiums depending on the usage of your car.
|Car Insurance Addons|
|Personal Accident Cover||Agency Repair|
|Engine Protection Cover||IDV-Insured Declared Value|
|No Claim Bouns||Passenger Cover|
The generic procedure of how pay as you drive car insurance works is pretty similar to any basic car insurance plan. The only thing different is the kilometre slabs of the insurance plans. When you buy your pay as you drive insurance plan, you are required to choose a driving slab. This slab will contain the number of kilometres you expect to drive your car during the tenure of the plan. Once you choose your required slab, the insurance premium of your plan is adjusted. The basic slabs you will find for pay you go car insurance plans include less than 3000 kilometres, 3000 to 5000 kilometres and more than 5000 kilometres. There can be a slight change in these numbers as per the plan and the providers. In addition to choosing a slab, you will be asked to enter details about the odometer of the car as well.
Once you have chosen the driving slab and purchased the plan, the insurance company will ask you to get a telematics device installed in your car. This device will be used to track car usage in the given tenure. The device can be connected to a telematics application that comes with it. Both the provider and the driver-owner get live updates of the total number of kilometres the car has been driven.
A very likely scenario, in many cases, is that you may end up exceeding the slab limit of your pay as you go car insurance plan. Once that happens, your insurer gets an immediate notification through the telematics application. The insurance provider will contact you when you have exceeded the kilometre limit of the plan. You can simply top-up your pay as you drive insurance plan if you happen to exceed the kilometre limit currently active. If no claims were made during the tenure, you can even switch to another coverage with a higher limit on kilometre slabs. The premium rates will be charged on a pro-rated basis. The premium you pay when refilling or opting for another coverage will only be for the own damage insurance part of the plan. The third-party coverage will continue till the end of the tenure.
The thing about telematics devices is that they not only cover the kilometres driven by your four-wheeler during the tenure of your pay as you go car insurance plan but also your driving style. Every time you pump up the accelerator, hit the brakes, the condition of the clutch, everything gets recorded. This means not only your car usage but also your driving will influence the car insurance plan. Your driving data is stored with the insurance company and it is used to decide the premium for your pay as you go car insurance plan. The location of your car and other similar details are also captured by telematics devices but not used by insurance providers. Data security is of utmost priority in such scenarios.
Any pay as you drive insurance plan covers all the basic benefits that a comprehensive car insurance plan covers. Given below are the basic inclusions of a pay as you go car insurance plan:
The premium you pay for your pay as you go car insurance plan is highly dependent on how much you drive your car and the way you drive it. If you are someone who does not use their car every day or very often, pay as you go car insurance is perfect for you. If you use your car to travel to work or drive it quite a lot for other reasons, pay as you drive insurance might not be the best fit for your car. If you are an expert driver with an impeccable driving record, pay as you drive car insurance may be the right fit for you. But if your car is driven by inexperienced drivers, say your children, who are still in the early phase of their driving years, then pay as you drive insurance will not be the ideal choice.
Given below are the steps you will need to follow and the details you will require when buying a pay as you drive insurance plan:
You will receive your insurance documents at the registered email address that you used when buying the insurance plan. Once everything is settled, the insurance company will allot a time slot to get your telematics device fixed in your car. Once this last step is completed, you are all set for the next 13 months.
Pay as you drive insurance plan is an amazing initiative that helps in reducing insurance costs while also increasing the plan’s cost-effectiveness. In addition to that, the motivation of paying less for subsequently equal benefits just by driving less and safely is better for road safety issues as well as the environment. Just make sure that you actually benefit from pay as you go car insurance plan before you buy it. Evaluate your insurance needs as well as private transportation needs before taking a concrete step. Also, try and take some advice from our experts and compare plans before you buy to get the best possible option.
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