Could pay-as-you-drive insurance help lower your carbon footprint?
Around 80% of Aussies are now concerned about the impacts of climate change, that’s according to a 2019 report from The Australia Research Institute.
More recently, news on temporary reductions in emissions during the lockdown and TV programs like ABC’s Fight For Planet A have stoked public interest and demand for permanent solutions.
One thing the TV series looks at is the emissions produced from cars. It’s a concern that is quite rightly expressed too, given that a 2017 report from the Climate Council shows that cars make up roughly half of all transport emissions in Australia.
So if you’re a car owner, what can you do?
#ParkItForThePlanet
While owning an electric vehicle might be the dream for the environmentally conscious Aussie, the current high price point means it isn’t feasible for many of us. The simplest solution right now is to drive your car less, or #ParkItForThePlanet.
This could mean swapping out driving with taking the bus or a train a few times a week. Or, if you are worried about getting on public transport right now, hopping on a bicycle. You could even look up free road safety workshops for cyclists in your area, if your riding is a little rusty.
Pay-as-you-drive car insurance
Now the best part about using your car less is that not only will you be reducing your carbon footprint, but you could also pay less in car insurance.
This is where pay-as-you-drive insurance comes in. As the name suggests, this type of car insurance is designed to benefit those who don’t drive much. It is often called a pay per kilometre plan and as a number of insurers suggest, is suitable for anyone who drives less than around 15,000 km per year.
Insurers who offer pay per km or pay as you drive insurance include:
How does it work?
Pay-as-you-drive insurance is pretty much just normal car insurance with a discount for driving less. Most are comprehensive policies, so will include all the usual cover you would expect.
Different insurers will measure your distance driven in different ways. For instance, Huddle will take an odometer reading from you when you sign up to the policy and another at the end of the year, while UbiCar uses the UbiCar Device to track the number of kilometres you drive each month.
So, there are few different options out there and pay-as-you-drive is growing in popularity every year.
Head to Mozo’s compare car insurance page for more options, or check out the policies on offer below to see if you could be getting a better deal for your wheels.
Compare car insurance - rates updated daily
Gold Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $500 - $1,850
- Agreed or market value
- Agreed Or Market
Available discounts
- Online Discount Up To 15%
Gold Comprehensive Car Insurance
Get award winning Car Insurance. Save 15% ^ on your first year’s premium when you purchase a new policy online. Budget Direct offers tailor-made cover, new-for-old replacement, 24/7 claims, a highly-rated claims service, and get a hire car following a theft.
- New car if written off
- Yes - within 2 years or 40,000 kilometres of original registration, whichever comes first
- Rental car after theft
- Yes - Up to 14 days, max $1,000 total.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days for at fault accidents.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $40 on every windscreen claim for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for drivers under 21, $500 for drivers under 24, $600 for unlisted drivers, $500 for inexperienced drivers over 24.
- Roadside assistance
- Optional Extra
- Other benefits
- -
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Budget Direct Gold Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes
- Choice of repairer
- No
- Choice of excess
- $500 - $5,000
- Agreed or market value
- Agreed Or Market
Available discounts
- Pay As You Drive Cover With Pricing Tiers Available For Limited Kms.
Comprehensive Car Insurance
Huddle Car Insurance, Pay as you drive & save up to 30% (T&Cs apply). 24/7 claims lodgement and new-for-old replacement (under 2 years).
- New car if written off
- Yes - within 2 years of original registration
- Rental car after theft
- Yes - Up to 14 days, max $70 per day.
- Rental car after accident
- Not at fault - Optional Extra. At fault - Optional Extra. Up to 10 days, max $70 per day.
- Windscreen cover
- Yes - standard excess. Option to reduce excess for first windscreen claim each year to $0 for an additional premium.
- Modifications
- Most modifications covered automatically
- Young driver excess imposed
- $1,200 for listed drivers under 21, $800 for listed drivers under 24, $2,000 for unlisted drivers under 21, $1,600 for unlisted drivers under 24, $800 for inexperienced drivers over 24, $800 for learner drivers.
- Roadside assistance
- Optional Service
- Other benefits
- -
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Huddle Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- No
- Choice of excess
- $800 - $2,000
- Agreed or market value
- Agreed
Available discounts
- No Claim Discount
Comprehensive Car Insurance
Stella have created a more intuitive experience and offer a product that’s been designed with women in mind; offering premium benefits, and optional extras and rewards for being a safe driver. Stella are back by QBE. Get a quick quote online in 40 seconds and insured in 4 minutes. Save 10% when you pay annually.
- New car if written off
- Yes - within 3 years and 60,000 km of original registration
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $0 on every windscreen claim for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for listed drivers under 25. $1,600 for unlisted drivers under 25
- Roadside assistance
- Optional Extra
- Other benefits
- -
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Stella Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $400 - $2,200
- Agreed or market value
- Agreed Or Market
Available discounts
- Online Discount $75
Comprehensive Car Insurance
Australia Post Comprehensive Car Insurance offers a broad range of coverage and includes cover for anyone who drives your vehicle. It also covers new car replacement if your recently purchased brand new car is written off within the first three years (provided it has travelled less than 60,000km).
- New car if written off
- Yes - within 3 years and 60,000 km of original registration
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess ($0 excess for repair only). Option to reduce windscreen replacement excess to $0 for an additional premium.
- Modifications
- Automatically covered.
- Young driver excess imposed
- $600 for listed drivers under 25, $1,600 for unlisted drivers under 25.
- Roadside assistance
- No
- Other benefits
- -
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Australia Post Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $400 - $2,500
- Agreed or market value
- Agreed Or Market
Available discounts
- 20% Discount On Contents Insurance If Youi Car Insurance Also Held
Comprehensive Car Insurance
Making sure your car insurance is about where you’re at right now could save you lots. Start a quote with Youi today and see what you could save. Exceptional Value Car Insurance award winner in 2020.^
- New car if written off
- Yes - within 2 years and 40,000 km of original registration
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for listed drivers under 25, $2,000 for unlisted drivers under 25
- Roadside assistance
- Yes
- Other benefits
- -
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Youi Comprehensive Car Insurance
*Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
^See information about the Mozo Experts Choice Car Insurance Awards