How do Pay-as-you-drive & Pay-how-you-drive add-ons work?
22 Aug 2022
What are PAYD & PHYD car add-ons?
Unlike any other insurance policy in the market, these policies are built to give you more control of your motor insurance costs. It allows you to prove you are a safe driver, and as a result, you can be rewarded with lower
insurance prices on renewal. The lesser/ better one drives, the lower premium they will have to pay.
How do these add-ons work?
This type of add-on works differently if you opt for a pay-as-you-drive or driving behaviour-based cover.
Pay As You Drive
Pay As You Drive cover operates on the simple rule that you should pay less insurance price if you drive less. Since you are not out on the road often, you have a low accident risk, and your insurance bill should reflect the
same.
Pay How You Drive
The premium for Pay How You Drive cover is calculated based on how you drive your car while on the road. The better and safer you drive, the lesser you pay.