Understanding Drive Less Pay Less policies

Sheen Panel Service on 1 August 2019

"It was owned by a little old lady who drove it to church on Sundays".

It's a classic selling point employed by used car salesmen that should always be taken with a grain of salt. But as it turns out, there may be some merit to low mileage driving, especially in the eyes of your insurer.

Pay as you drive insurance offers all the benefits of comprehensive car insurance for people who don't drive far or often. This special type of insurance comes with reduced fees and premiums, where drivers pre-pay based on the distance they drive.

No matter what kind of insurance you have, car damage is a reality for all drivers. If you find yourself having to claim after an incident, Sheen Panel Service can liaise with your insurer to get your car fixed quickly.

How does pay as you drive insurance work?

car parked with red light on

For eligible drivers, pay as you drive insurance is a flexible way to lower your car insurance premiums. It takes a little more documentation than other comprehensive car insurance policies, but in the end, it will be a far more equitable choice for some drivers.

Usually, applying for pay as you drive insurance will follow these steps:

  1. Contact your insurer after estimating how many kilometres you will drive in a year.
  2. Disclose your current odometer reading. Your nominated number of kilometres will be added to your odometer reading, giving you a total cap for driving over the course of the policy.
  3. Keep an eye on your odometer and how many kilometres you drive throughout the year.
  4. If you come close to your total, you can contact your insurer to top up your kilometres.
  5. If you drive less than your total in a year, you can potentially roll your kilometres over into the next year.

If you go over your limit and don't top up, you risk voiding some elements of your policy. For example, going over your purchased kilometres will still insure your car for Fire, Flood & Theft, but will not protect you from the costs of damaging other vehicles or property.

Has your car been damaged following a road incident? Upload your smash, and we'll get back to you with a quote.

What does it cover?

Depending on what's stipulated in your policy, your pay as you drive insurance might cover:

  • Loss or damage to your car by reason of fire, flood, accidents, natural events, or theft.
  • Damage to the property and vehicles of others cause by you and your vehicle.
  • Personal property damaged or stolen from your vehicle
  • Damage or theft of baby seats, prams, or other child-related items
  • Essential repairs, emergency repairs, and towing costs
  • Trailer and caravan repairs following an incident
  • Accident replacement vehicles if your car needs repairs
  • Emergency travel expenses and accommodation if necessary
  • Lock and key replacement for lost and stolen keys and fobs
  • Windshield repair as an optional extra

If you're considering purchasing a pay as you drive car insurance policy, be sure to thoroughly read the product disclosure statement. If you go over your nominated kilometres for the year, you may end up voiding some elements of your policy, putting you at risk for high costs.

Is pay as you drive insurance right for me?

old man driving car

If you don't drive very often or very far, then pay as you go insurance is perfect for you. If you have a good driving record, and are over 25 years of age, then you may be eligible to negotiate on your insurance premiums and apply for a pay as you go insurance policy.

You will be eligible for pay as you drive insurance if you:

  • Catch public transport to and from work, or as your primary mode of transportation
  • Already own a primary vehicle, and only use your secondary vehicle for short trips
  • Only take your vehicle away for drives on the weekend
  • Are elderly, infirm, or spend most of your time at home
  • Are retired and no longer use your vehicle to commute

What do I do after a collision?

Your actions following a collision should be the same as in any other situation, no matter what level of policy you have. You need to protect yourself and others, document damage, and get in touch with your insurer, in that order. When the time comes to get repairs, Sheen Panel Service has made it easy for you.

We understand insurance, and we understand your insurer. Following a collision, we can work with them to get your car back on the road. Call us to organise emergency towing from the crash site. While we get to work fixing your car, we can even offer accident replacement vehicles for your convenience.

If you need urgent smash repairs, contact Sheen Panel Service. Upload your smash online and we will get back to you with an accurate quote for repairs.