How Does Pay-As-You-Use Car Insurance Work?
Car Insurance is a crucial requirement in the car industry and it is mandatory to have it with a minimum of a Third-Party insurance cover. However, it is subject to finance company approval as they will ask for Comprehensive coverage to protect their interest. This is because car insurance comes in to compensate for a risk in the event that it happens when it’s within the terms of the policy. Car Insurance is important and it is recommended that car owners apply for Comprehensive insurance policies so that in case of an accident, fire, theft, own damage, third party property claims and bodily injury, they can be compensated. However, insurance policies aren’t cheap and as a result, most car owners feel that they should have only the mandatory insurance. It is as a result of this that the Pay As You Use car insurance was introduced.
The Pay-As-You-Use Car Insurance Policy
To help drivers have better and more dependable insurance policies, car insurance companies have come up with Pay As You Use car insurance. This is a flexible arrangement that allows drivers to pay for insurance as partially as they operate. This arrangement charges drivers according to the time and miles driven as opposed to the original insurance plans that called for annual insurance policy payments.
Pay As You Use is a new type of insurance that is getting popular around the world because it allows policyholders to pay for their insurance depending on their usage. Also known as pay per mile insurance, this insurance plan charges you basing on miles and hours driven alongside a monthly or annual charge that’s responsible for covering your car against theft when it’s parked. This insurance policy is a rolling subscription and that can be canceled whenever the policyholder prefers to.
The Benefits Of The Pay-As-You-Use Car Insurance To Drivers
The Pay As You Use car insurance policy utilizes the concept of the driver paying for the miles driven. This is a welcome arrangement for most drivers because they feel that they are charged fairly. If you are a car owner who spends less time on the road, you will only have to pay for the few miles that you drive and therefore pay less premiums and have all risks covered in case they occur.
Drivers can now enroll for insurance policies that they would have otherwise not have enrolled for due to the cost. Car insurance is crucial and every smart car owner will opt for the pay as you use because you pay only for miles you are on the road, and you can cancel it whenever you feel like. This car insurance policy is the best and many drivers find it not only convenient but flexible, cheaper, and easier to work with.
In Singapore, there are only a limited number of insurers who offer such coverage and it is not a common cover. However, if you manage to get one of such cover, do take note of the terms and conditions and usually the own damage excess will be much higher so take it with a open eye before you take it up. .
