Pay as you drive car insurance

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.