How and how often you drive to determine your car insurance premium soon

The concept of 'pay as you drive" stems from the fact that policyholders will be charged premiums based on vehicle usage

To facilitate technology (tech)-enabled insurance covers, the Insurance Regulatory and Development Authority of India (Irdai) has permitted general insurance companies to introduce concepts like ‘pay as you drive’, ‘pay how you drive’, and floater policies for vehicles belonging to the same individual owner of two-wheelers and private cars as add-ons in motor own damage (OD) policies.

With these add-ons, the motor OD policy can be tailored, based on customer driving patterns, vehicle usage, and other parameters to offer the best features. These are expected to provide insurers with better rating parameters, helping them differentiate the good drivers from the not-so-good