Pay as you drive car insurance

Car insurance tips

07.11.25 | 3 min read

If your car spends more time parked than on the road, then ahm Pay As You Drive cover^ could be your new best friend. Instead of paying a flat fee no matter how much you drive, Pay As You Drive cover^ lets you pay based on how many kilometres you’ll actually clock.

Why you might want to give Pay As You Drive cover^ a spin when it comes to your car insurance

If your car spends more time napping in the garage than hitting the open road, Pay As You Drive cover^ (PAYD) might be the car insurance option you’ve been looking for. Especially if you’re after Comprehensive car cover that suits different budgets and lifestyles.

Here’s a quick look at what Pay As You Drive cover^ is, how it works, and what some of the benefits are.

So, what is Pay As You Drive cover^?

Pay As You Drive cover is a flexible car insurance option where your premium is based on how much you plan to drive^. Yep - no more paying the same as someone clocking 20,000km a year if you’re only doing a few short drives a week.

Think of it this way: if your driving habits have changed - maybe you’re no longer commuting daily or taking long road trips - Pay As You Drive Cover could be a better fit. It lets you choose a yearly kilometre limit that reflects how much you plan to drive, so your premium is more suited to your lifestyle compared to standard comprehensive cover.

How Does It Work?

1. Start a quote and pick your kilometres
When taking out ahm Comprehensive car insurance and you choose anywhere between 1,000 and 15,000 kilometres per year, you are eligible for Pay As you Drive Cover^. Not sure how many kms you’ll use? That's ok, you can look at topping up your kms later if you need to. Just keep in mind that we'll need to adjust your premium, too.

2. Send us your start odometer reading
You’ll have 14 days from the start date of your policy to let us know your start odometer reading. We’ll then calculate your “end” odometer reading based on the number of kilometres you’ve chosen.

3. You’ll get a certificate of insurance
This includes your start odometer reading, the number of kilometres you plan to travel, and your expected end odometer reading.

4. Need more km’s? Just top up.
Planning a spontaneous trip up the coast? You can look to top up your kilometres during your cover period either online or by giving us a quick call at 1300 518 049. Your premium might change, but we’ll keep it straightforward.

5. Some things to keep in mind
To make sure everything runs smoothly, it’s important to double-check your odometer readings in your account or on your Certificate of Insurance. If you need to make a claim and your odometer reading at the time of the claim is less than your start odometer reading or greater than your end odometer reading as noted on your Certificate of Insurance, an additional excess will be applied.

What are some of the benefits of Pay As You Drive cover^?

It’s usually cheaper
Pay As You Drive cover^ is usually cheaper than standard ahm Comprehensive cover*, because you’re only paying for the kilometres you plan to drive.
It’s flexible
Life changes. You might drive less this year, or more next. With Pay As You Drive cover^ you can look to adjust the kilometres you plan to drive to suit your lifestyle.
You’re in the driver’s seat
You choose how much you plan to drive - which may reduce how much you pay. It’s cover that puts you in control.

So, if your car is more “quick coffee run” than “coast-to-coast road trip,” Pay As You Drive cover^ could be a great way to help you stay protected on the road while also helping you save on costs. It’s comprehensive, flexible, and built for the way you actually use your car and the kilometres you plan to drive.

Hot tip: Always check the Product Disclosure Statement (PDS) so you know exactly what’s included and if a product is right for you.

Get a quote(opens in a new tab) today and see if you could be saving more - just by driving less.

Things you should know

ahm health insurance is a business of Medibank Private Limited (ABN 47 080 890 259), who is the promoter of this insurance, as an authorised representative of Open Insurance Pty Ltd ABN 23 166 949 444 AFSL No. 451712 (Open) under AR 000286089. This insurance is issued by Open on behalf of the insurer, The Hollard Insurance Company Pty Ltd ABN 78 090 584 473 AFSL No. 241436. Medibank Private Limited and Open act as agents of Hollard and not on your behalf. Any information or advice provided is general information only and doesn’t consider your objectives, financial situation or needs. You should carefully read the relevant combined Product Disclosure Statement and Financial Services Guide and consider the Target Market Determination to help you decide if the product is right for you.^Saving of up to 30% derived from premium comparisons between ahm unlimited kilometre comprehensive car cover option and ahm Pay As You Drive comprehensive car cover option. Calculations based on a sample of profiles of existing ahm car insurance customers who advised they drive under 15,000 km annually. Current as at 10 September 2025. Actual savings are determined by your individual circumstances, including the kilometres selected, excess chosen and other risk factors. Minimum premiums may reduce savings. Kilometres can be increased during the policy period; an additional premium is payable. In event of an accident and the end odometer reading is exceeded or is below the start odometer reading on your Certificate of Insurance, an additional excess is applied.*Benefits subject to terms and conditions, including exclusions and limits (and sub-limits) of the insurance policy. When making decisions about the product you should always refer to the Product Disclosure Statement and Financial Services Guide and the relevant Target Market Determination.