Pay-as-you-drive car insurance
Want car insurance that reflects the way you drive? It doesn't get much closer than pay-as-you-drive car insurance.
What is pay-as-you-drive car insurance?
Pay-as-you-drive, also known as pay-per-kilometre, is a type of car insurance that is priced to reflect how often or how far you drive.
It's sometimes offered as an optional extra with comprehensive car insurance, but there are providers out there whose policies are built around the concept.
In theory, the idea behind pay-as-you-drive car insurance is that your provider will discount your premium if you drive less. What this means exactly is up to the provider.
They may have varying kilometre limits, they may have different methods of tracking how often or far you drive, and may provide different discount amounts.
Who is pay-as-you-drive car insurance good for?
Pay-as-you-drive car insurance typically suits people who drive about a couple of times a week at most, or those who don't drive very far.
If you drive on a daily basis, but still want to save on your car insurance, then check out the deals we've found when you compare car insurance on our site.
While 'pay as you drive' is a convenient label, it's worth noting that most pay-as-you-drive plans are based on estimated kilometre usage rather than real-time tracking. View
While real-time tracking policies do exist, the vast majority of policies offering a 'pay as you drive' feature ask you to estimate how much you plan to drive over the following year, and then it's up to you to stay as close to that as possible.
How does pay-as-you-drive insurance work?
Pay-as-you-drive policies vary in their approach. Generally, you agree to a maximum number of kilometres you plan to drive over a set period (yearly or monthly).
Some insurers may require an initial odometer reading when you take out the policy, followed by periodic checks. However, this isn't universal.
Many insurers rely on your estimate without regularly verifying the odometer, essentially operating on a trust basis. It's important to be accurate in your estimates, as significantly exceeding your declared kilometres can lead to complications or increased costs in the event of a claim.
If you need to make a claim, the provider WILL read your odometer. So, don't get caught underquoting how much you drive.
For an idea of limits, many providers advertise a range between 15,000km to 20,000km per year. You can often increase this limit if needed, though this typically incurs additional costs.
A growing number of policies globally are adopting more sophisticated tracking methods, such as real-time monitoring through an app or device and then charge you on a per-kilometre basis. At present, only KOBA offers such a plan in Australia.
Which companies offer pay-as-you-drive insurance?
As more innovative, tech-focused car insurance companies like KOBA are coming onto the market, more providers are having to compete with the flexibility they offer. So don’t be surprised if you see pay-as-you-drive or pay-per-km policies popping up more often. Some companies offering these include:
Is pay-as-you-drive car insurance cheaper?
In theory, yes. The primary selling point of this type of car insurance policy is that you receive a discount for driving less, so this will likely make it cheaper than standard comprehensive cover.
But not always.
If you exceed the kilometre range without letting your provider know, or if you have to keep topping it up, this could end up costing you more.
As with most insurance policies, if you want optional extras included this could also make it more costly. And despite the km cost-savings, it won’t necessarily be cheaper than a third party car insurance policy, or reduce your excess at the time of a claim.
Pay-as-you-drive pros and cons
There’s light and shade to all things in life, including car insurance. So consider the pros and cons of pay-as-you-drive car insurance before signing onto a policy (and always read the PDS).
Pros:
- You can get comprehensive cover at a lower price
- You can often top up your kilometres if circumstances change
- The discount could incentivise you to reduce unnecessary driving
Cons:
- You have to pay an extra premium to bump up the km limit
- Your claim might be denied or excess increased if you’ve exceeded the limit
- You can’t set and forget this kind of policy, since kms need to be monitored
Once you’ve assessed all the details of pay-as-you-drive car insurance, check out some of the comprehensive options below.
Compare comprehensive car insurance - rates updated daily
Gold Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $550 - $1,900 (varies By State)
- Agreed or market value
- Agreed Or Market
Available discounts
- No Claim Discount
- 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.
- Roadside assistance
- Optional Extra
- Other benefits
- Existing Budget Direct memebers get a $100 eGift Card when you purchase a new Pet Insurance policy with code "ECGIFT"
- Other restrictions
- -
- States where offered
- SA VIC TAS NSW ACT QLD WA
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 Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $300 - $2,550
- Agreed or market value
- Agreed Or Market
Available discounts
- Online Discount $75
Comprehensive Car Insurance
QBE’s Comprehensive Car Insurance covers you for things like accident damage, fire and theft. Enjoy three year new car replacement. Get a hire car if you’re not at fault. Lifetime repair guarantee. Save $75 when you apply online.
- 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
- -
- States where offered
- SA VIC NT TAS NSW ACT QLD WA
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 QBE 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
Comprehensive Car Insurance
Youi like to get to know you from the very first conversation, which provides you with the opportunity to find comprehensive car insurance cover that could better suit your lifestyle and your needs. Because we’re all individuals, so we all use our cars differently from day-to-day. Youi is car insurance that’s a bit more you-shaped.
- New car if written off
- Yes - within 2 years and a listed driver is the first registered owner
- 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 $50 for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- Unlisted and aged 25 and over: $700, Unlisted and aged under 25: $2,000, Listed and aged under 25: $600
- Roadside assistance
- Yes
- Other benefits
- -
- Other restrictions
- -
- States where offered
- SA VIC TAS NSW ACT QLD WA
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
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $500 - $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). Save $75 on your first year's premium when you purchase Comprehensive Car Insurance online. T&C’s apply.
- 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
- -
- States where offered
- SA VIC TAS NSW ACT QLD WA
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
- Choice of repairer
- No
- Choice of excess
- $800 Flat Excess Fee
- Agreed or market value
- Agreed
Available discounts
Comprehensive Car Insurance
ROLLiN’ put their customers in the driver’s seat by offering great value comprehensive car insurance with no additional excess for young drivers. Zero cancellation fees, 24/7 claims support via phone and a policy paid monthly. Plus, you can list multiple cars and drivers under the one policy, as long as they fit the underwriting criteria
- New car if written off
- Yes - within 15,000km of original registration
- Rental car after theft
- Yes - Up to 21 days, max $80 per day after a covered event
- Rental car after accident
- Yes - Up to 21 days, max $80 per day after a covered event
- Windscreen cover
- Yes - $0 windscreen excess
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- No additional excess for young drivers. $3,000 for unlisted drivers
- Roadside assistance
- No
- Other benefits
- Optional benefit to boost the Single Car Value by 15%, it will be shown on your Insurance Certificate
- Other restrictions
- -
- States where offered
- SA VIC NT TAS NSW ACT QLD WA
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 ROLLiN' 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.
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