Hollard pay as you drive car insurance calculates your monthly car insurance premiums on the mileage you travel on a month by month basis so the less you drive, the cheaper your cover will be. More precisely, if you are travelling less than 2000 kilometers per month, pay as you drive may be the perfect vehicle cover for you. Hollard pay as you drive works very much like a mobile phone contract where you pay a monthly fee, you get free minutes and when you have exceeded those minutes you start to pay for any further calls. This type of vehicle cover is just the same. Your premium is broken into two portions, a six month premium which you will pay regardless of the distance you travel and a variable monthly premium which is based on the amount of kilometres you drive every month. The variable premium will only be charged for once you have travelled more than 417 kilometers in the month.
The Hollard pay as you drive fixed premium is calculated on normal car insurance factors such as a persons age, address, type of vehicle you need insured etc. The variable premium uses your personal insurance factors to calculate a cent per kilometre rate for you. In order to calculate your total monthly cover premium, the kilometers you travel each month are multiplied by the cent per kilometre rate which is then added to your fixed monthly premiums, you are not charged for the first 417 kilometers and the premium is also capped at 3200 Km per month amount but your mileage is not capped. This means that even though you may have travelled more than 3200 kilometers a month, you will not pay for any distance traveled beyond the 3200 Km amount.
The fixed premium also includes a discounted subscription for trackers skytrax tracking device and your premium will not be loaded for business use, providing you with considerable savings. Fairer more accurate cover is exactly what the Hollard pay as you drive car insurance offers a policy holder.