Pay-as-you-drive insurance attractive to many South African motorists

    December 19, 2017

    Pay-as-you-drive insurance is creating a lot of interest among South African motorists.

    That is because this type of insurance saves consumers substantial amounts of money on the cost of their comprehensive motor cover.

    Also, pay-as-you-drive enables motorists to obtain comprehensive insurance while only paying for the number of kilometres they drive each month.

    How does pay-as-you-drive insurance work?

    All the motorist has to do is to give an approximate figure of the number of kilometres they travel each month and then select the plan that matches this figure.

    Another attraction of the pay-as-you-drive insurance scheme is that motorists will not “lose” kilometres if they travel shorter distances in a month. These kilometres carry over for future use. In other words, if a motorist claims to travel Pay-as-you-drive500 kilometres a month and only clocks up 350 kilometres, the balance of 150 kilometres is carried forward for use in future months.

    What are the advantages?

    The main advantage of pay-as-you-drive insurance is that it favours low-mileage drivers. That is because the lower the mileage each month, the lower the premium you will have to pay. So, this type of insurance should be seriously considered by motorists who basically only use their vehicles to ferry children to and from school and sports meetings, or those who mainly use their vehicles to do the weekly shopping.

    In addition, pay-as-you-drive from Hollard Insurance offers six options based on kilometres travelled. Importantly, policyholders pay premiums based on distances travelled each month.

    Who qualifies for this type of insurance?

    Criteria for qualifying for pay-as-you-drive insurance include:

    • A minimum age of 25 years
    • A valid driver’s license no less than one year old
    • Personal accident record
    • Personal traffic violations record
    • Make and model of the vehicle

     

    What type of cover is there?

    Cover benefits include:

    • Free Accidental Death insurance of up to R15 000
    • Third party liability cover of up to R10 million
    • Free 24-hour emergency roadside
    • A 10% kilometre bonus during the first year to cover extra mileage

     

    Options from which to choose

    Hollard’s pay-as-you-drive insurance plans are:

    • Drive500 – for motorists who travel 500 kilometres or less a month
    • Drive750 – for motorists who travel 750 kilometres or less a month
    • Drive1000 – for motorists who travel 1 000 kilometres or less a month
    • Drive1250 – for motorists who travel 1 250 kilometres or less a month
    • Drive1500 – for motorists who travel 1 500 kilometres or less a month

     

    What are the requirements?

    All pay-as-you-drive policyholders are required to have data collection and tracking devices installed into their vehicles. And these devices collect all relevant information, giving the insurer accurate data on the number of kilometres every month.

    How to obtain a quote

    Firstly, visit the pay-as-you-drive online website and answer the questions relating to personal and motor vehicle information.

    Then enter the plan best suited to your personal needs and then you will be given an estimated monthly premium for a pay-as-you-drive insurance plan.

    Get a car insurance quote by completing and then sending the form on this page

    All info was correct at time of publishing