A pay per km car insurance package in South Africa comes in the form of Hollard pay as you drive. This 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 insurance 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 and you get free minutes. So when you have exceeded those minutes you start to pay for any further calls.
This type of pay as you go vehicle cover is just the same. Your premium is broken into two portions.
Firstly a six month premium. Which you will pay regardless of the distance you travel.
Secondly a variable monthly premium. That is based on the amount of kilometers 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 to insure etc.
The variable premium uses your personal insurance factors to calculate a cent per kilometer rate for you.
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Pay Per km Car Insurance Calculations
In order to calculate your total monthly cover premium, the kilometers you travel each month are multiplied by the cent per kilometer 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 discount subscription for trackers skytrax tracking device. And your premium will not be loaded for business use, providing you with considerable savings.
See more on how a vehicle tracking device works on your car.
This type of pay per km car insurance offers alternative comprehensive cover to people who are perhaps driving a lot less often than most. Because it allows a consumer to only pay for the amount of mileage which they travel instead of having a fixed monthly premium amount.
In summary pay per km car insurance is ideal for motorists who spend less time driving on the roads in South Africa.
So the Pay As You Drive car insurance offering is geared towards motorists who do not use their vehicle for travelling long distance on a regular basis. Therefore can save drivers a considerable amount of money each month. With the possible lower premiums yet still offer peace of mind motoring.
The idea behind this is to help people save money on their monthly bills. So the less distance someone drives their vehicle on the roads, the less money they pay on vehicle insurance.
Fairer more accurate cover is what the Hollard pay as you drive insurance offers a policy holder.