How we work out your car insurance premium
Interested to learn how PAYD pricing for our comprehensive car insurance works?
Have a look at the example below
Dave is a 27 year old male from Geelong (3220). He has a 2004 Mazda 3 Maxx Sports Sedan Auto which he only drives about 5000km a year.
An average premium for Dave from three major Australian insurers was $717.63.
But if Dave bought 5000km with Pay As You Drive, he would only pay $377.45.
That’s a massive saving of $340.18!
Get an online car insurance quote now to see how much you could save!
Traditional Premium= Average premium based on quotes from 3 major Australian Insurers. Prices as at 5 February 2009. Savings will differ based on your circumstances.
Quote details: Age and address as shown. Paid yearly, maxi. NCD. No motor claims, accidents or losses in last five yrs. No serious offences, suspensions or maxi. demerit points in last 3 years. Drivers under 25 excluded. No modifications or non standard accessories, garaged at night,immobiliser and alarm fitted. No finance.
Your car insurance premium
Pay As You Drive is comprehensive car insurance for good drivers over 25 who drive less than the average person in their neighbourhood. We price your premium based on all the things you'd expect, such as where you live or your driving record. In addition to the usual rating factors, we look at people in your suburb and figure out an average distance they drive.
Most of the bad things you are insured for can only happen when you are driving your car, like crashing into another car for example. If you don't drive, those things cannot happen. So the more a person drives, the more an insurance company must charge for that policy in order to pay claims. When you buy a "Traditional" car insurance product, people who don't drive a lot subsidise the people who do drive a lot. At Pay As You Drive, we don’t think that is very fair, and we are doing something about it!
With PAYD you pay for the kilometres you plan to drive. That means good drivers who drive less than others in their neighbourhood no longer have to subsidise the people who drive a lot. So if you don't drive as much as the average person in your neighbourhood, you could save with Pay As You Drive.
To find out if you can save with Pay As You Drive