Pay-As-You-Drive Car Insurance: Is It Worth It For Low-Mileage Drivers?

Car insurance premiums in India traditionally follow a fixed annual payment model, determined by factors like vehicle type, age, engine size, and city of registration. But for drivers who use their cars occasionally, “pay-as-you-drive” (PAYD) insurance offers a flexible alternative. Instead of paying the same premium as daily commuters, your insurance cost is linked to your actual usage. This model, popular in the US and Europe, is now gaining traction among Indian insurers.