Pay as you go car insurance provides cover for vehicle owners looking for low cost premiums while still having the full benefits of a complete policy. This is a cheap option for a lot of drivers and a new concept that so far has proved to be very sound both here in South Africa and overseas and can be applied for online. The concept of this kind of vehicle insurance cover offers those that are only driving on weekends a much more low cost alternative than having to pay for days in the month when a vehicle is parked.
Hollard Pay As You Drive is the first fully comprehensive car insurance cover provider in South Africa to offer this kind of alternative solution.
Monthly premiums are based on your monthly mileage with this kind of policy so the less you drive, the less you have to pay. Fixed premiums are calculated in the same way as usual car insurance quotes which take certain factors into account such as your age, address, type of vehicle you drive and more. On the other hand the variable premium option calculates a cents per kilometer rate for you. Calculations are made by multiplying the kilometers you travel each month by your cents per Km rate. This is then added to the fixed monthly premium.
Whether or not this kind of vehicle cover is the best for you will really depend on how often you spend on the roads. One thing’s for sure and that is the pay as you go car insurance will stay as a more low cost monthly premium alternative to the usual vehicle cover.