Driving less frequently due to Covid? Know all about pay-as-you-drive insurance policies
Updated: 21 May 2022, 12:00 PM IST
- Pay-as-you-drive policy: Here, the third-party premium will be as per the IRDAI’s standard rates and the own-damage premium will be determined by the actual usage or the distance driven. The usage (kilometres run) can be accurately tracked through a telematics device which will be installed in the vehicle or also through a smartphone app.
It’s important to understand that the third party cover - which is a lawful mandate - only covers the damages caused by your vehicle to the third party.