subject: All About Pay As You Drive Car Insurance [print this page] All About Pay As You Drive Car Insurance All About Pay As You Drive Car Insurance
There are many different auto insurance packages and types of cover on offer. There is now a unique type of motor insurance available in South Africa, called pay as you drive insurance. This insurance is calculated on a cent per kilometre rate.
Pay as you drive insurance is great in that you pay a small set amount for the comprehensive insurance, which covers your vehicle in the case of theft, and thereafter you only pay for the amount of kilometres that you travel each month. One of the perks of taking out pay as you drive insurance is that, depending on the offer, you may only have to pay for the mileage you have driven after a certain amount of kilometres clocked. This is a great incentive for those who do not drive a lot every month. There are many different packages and kilometre roll over deals with pay as you drive insurance. There are some plans which will allow you to monitor how many kilometres you travel the first two months, so that you will be able to judge whether you are on the right allocated kilometre plan or not. The insurance company is able to track how far you travel each month by installing a tracking device in the motor vehicle. This tracking device also lowers the theft risk of the motor vehicle, as the tracking company can trace the vehicle through satellite transmitters if it is stolen. This improves the recovery time of a vehicle, and therefore lowers your vehicle's premium due to the decreased theft risk. The tracker has to be installed by the certified tracking company upon commencement of the policy. Your insurance company will inform you of where to go when you need to install the tracking device. The tracking device is hidden cleverly in the vehicle so that would be thieves cannot find it and disable it.
Your set comprehensive package premium and the set cent per kilometre rate are calculated on a range of factors. These factors are attributed to your risk profile. Your risk profile is built on a range of factors, such as your age, address, driving history, gender, and the motor vehicle that you drive. Each of these factors is equally important, and contributes to the premium you will pay monthly.
Pay as you drive insurance is very popular in the commercial industry. Businesses like to take out pay as you drive insurance because they are better able to monitor the movements of their employees. This naturally only refers to the employees that are using company vehicles. Pay as you drive insurance will enable the employer to track where the employee was driving, through use of the tracker on the insurance company's website. If employers pay for their employees' fuel consumption, this tracking device will assist them in determining how much they should be paying out.
Usage based insurance is widely hailed by environmentalists. They enjoy this type of insurance being in existence because it is believed that pay as you drive insurance encourages people to use their cars less, therefore lowering the negative impact of carbon monoxide emissions on the environment.
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