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Category:
Insurance
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Short Term Insurance
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Hollard Pay As You
Drive
Hollard Pay As You Drive
Motor Insurance
How It Works
A step by
step explanation of how Pay As You Drive works:
1)
Pay As You
Drive
is a comprehensive
car insurance
product where
premiums are based on the actual distance the insured car travels on
a monthly basis rather than an assumed “average” across all insured
vehicles. If you travel less than the average, rightly, you should
pay less than you would for a typical car insurance product.
2)
Based
on the estimated monthly distance travelled in the insured car, and
allowing for that annual holiday, you can select one of the
following DrivePlans; Drive500, Drive750, Drive1000, Drive1250,
Drive1500. The numeral indicates the monthly Kilometres insured as
part of the DrivePlan.
3)
Alternatively, the DriveMax plan offers unlimited mileage, and also
acts as the maximum premium you could be charged if you do unusually
high mileage in a particular month.
4)
At
inception of the policy, Pay As You Drive will credit your
policy with one extra months DrivePlan Kilometres (called Grace
Period Kilometres). Over the first two months of the policy Pay
As You Drive will monitor the distance travelled by the insured
vehicle and will advise you whether the vehicle is on the correct
DrivePlan or not. The Grace Period Kilometres ensure that there are
no nasty surprises if you have underestimated the insured car’s
typical monthly mileage. The Grace Period Kilometres are free and
can only be used in the first two months of the policy.
5)
In
order to track the Kilometres the insured car travels, you will be
required to install a Data Collection Device in the insured car.
This device also serves as a vehicle recovery unit in the event that
the car is stolen. Pay As You Drive has negotiated a
significant discount on the Tracker SkyTrax unit for policyholders.
6)
In
any particular month, if you do not use the DrivePlan Kilometres,
any unused Kilometres are carried over to your DriveSave Account for
future use. This does not apply to the Grace Period Kilometres.
7) In
the first year of the policy, Pay As You Drive adds 10% Bonus
Kilometres to the insured car’s DriveSave Account to act as a safety
net for those months when the insured car exceeds its DrivePlan
Kilometres! In subsequent years, the Bonus kilometre allocation may
vary based on driving behaviour, claims experience and duration of
the policy.
8) In
the event that the insured car exceeds the DrivePlan monthly
kilometre allowance, and has used the accumulated Kilometres
available in the DriveSave Account, Pay As You Drive will
bill you at a rate-per-kilometre (DrivePlus rate) for the excess
Kilometres. The DrivePlus rate is provided at quotation stage and
with your policy document.
9) Each
month a statement is e-mailed to you that details every trip the
insured car did during the previous month. This itemised trip
summary will enable you to verify your monthly trips. The premium
for any DrivePlus Kilometres will be billed together with the
DrivePlan premium the month after you receive the statement.
10)
In
the event that the insured car consistently travels more or less
than the DrivePlan Kilometres, we will recommend appropriate
plan changes on the monthly statement. The options presented will
always indicate what would be best for you in terms of price.
11)
At no
stage will you pay more than the premium applicable to the Pay As
You Drive DriveMax plan, even if the travel is business related.
12)
Pay As You
Drive
undertakes to keep your premiums as predictable as possible. For
this reason we will not adjust your premiums due to claims at any
time other than on the anniversary of your policy.
13)
Also
included in the policy are the following value added benefits:
a)
Accidental death cover of R15 000 is paid in the event that the
policyholder dies in an accident in the insured car.
b)
Up to
R10 million for third party liability cover that pays damages, legal
costs and expenses if you become legally liable following an insured
event - i.e. an accident in which damage or injury is caused to a
third party.
c)
Pay As You
Drive's
assistance
service benefit provides cover for accident management, roadside
assistance and medical assistance in the event of a breakdown or an
accident.
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