Your auto insurance rate may soon be determined by how often and how long you drive

The Insurance Regulatory and Development Authority of India (Irdai) has allowed general insurance companies to introduce ideas such as “pay as you drive”, “pay how you drive” and floating policies for vehicles belonging to the same owner individual two-wheelers and passenger cars as complements in automobile insurance policies (OD). This is done to facilitate technology-based insurance coverages.

Engine OD policy can be customized with these add-ons to provide the best functionality based on customer driving habits, vehicle usage and other factors. These should give insurers improved rating criteria, allowing them to distinguish between excellent and poor drivers and allocate premiums appropriately.

Previously, there was no way to separate different types of drivers, but now it is possible, and customers who truly deserve a bigger discount will be rewarded appropriately. Since third party liability (TP) coverage is required and most people choose it, this should also reduce the cost of OD coverage.

Pay-as-you-go insurance stems from the notion that policyholders will be assessed rates based on vehicle usage. Pay How You Drive, which is based on the idea that customers pay premiums based on their driving standards, is similar.
Additionally, floating insurance is designed to reduce difficulty for vehicle owners by allowing them to purchase a single policy to cover all of their vehicles rather than having to purchase separate policies for each.

The insurance regulator says the idea of ​​car insurance is constantly evolving. The emergence of technology has accelerated the insurance industry’s efforts to meet the compelling yet demanding aspirations of millennials. The property and casualty insurance market must evolve with the changing needs of policyholders. The introduction of such complementary alternatives would help give OD car insurance in the country the much needed boost and improve its penetration.

Insurance costs may vary depending on our driving habits, including frequency, location and amount. These situations are covered by the “Pay as you Drive” policy. The way we drive can also allow us to drastically reduce the cost of our car insurance.

There are now two categories of car insurance cover: all-risk insurance and TP civil liability insurance. A comprehensive auto insurance package includes TP liability as well as OD coverage, which covers all expenses incurred by the insured as a result of a car theft or accident.

The benefit of purchasing a comprehensive auto insurance policy is that supplemental plans and endorsements allow the policyholder to receive additional benefits without purchasing additional policies. Every vehicle owner is required by law to take out TP civil liability insurance. It protects the interests of the policyholder against damage that the policyholder may inflict on someone or something (such as property).