No one likes paying for something they don’t utilize. Usage based motor insurance by Pay As You Drive is starting to become an increasingly popular insurance cover for individuals who travel less than 1500km per month. With this unique insurance policy you pay for the kilometers you travel rather than for when your motor vehicle is safely locked up in your car port.

Getting this insurance policy is extremely simple. The only real requirements are that you are 25 years or older, in the possession of a driver’s licence older than 1 year and your travels must be less than 1500 kilometres from month to month.

The principle behind usage based motor insurance is to allow for individuals who are not frequent travelers. For that reason, the various Pay As You Drive plans are further broken down to be even more fair to these types of clients and range from the Drive500 DrivePlan to the Drive 1500 DrivePlan, where the prefix is the maximum number of kilometers allowed per month. Naturally the lower the kilometers, the lower the premiums.

Because usage based motor insurance is kilometer based, a data collection system needs to be placed in an insured’s vehicle. This device will keep a record of the monthly kilometers journeyed and will then detect whether the policy holder has travelled less than the allocated monthly distance, or if an added “per kilometer” charge should be levied. You will receive a detailed breakdown of your travels via electronic mail every month.

As with several policies, the usage based motor insurance policy also offer added advantages. This vary from accidental death cover to 3rd party liability cover and an assistance service advantage. Talk to your insurance agent or broker about the different rewards and make sure that you are aware of the value of each benefit, as well as the associated conditions.

Insurance plans are all about associated risk. If you don’t journey extensive distances on a regular basis, you are not as big a risk as the person who is on the road 7 days a week – don’t allow your insurance provider to hold you accountable for other customers’ risk!

For more information about usage based motor insurance visit the website http://www.payasyoudrive.co.za