Pay As You Drive Car Insurance
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9000+ Cashless

Network Garages

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96% Claim

Settlement (FY23-24)

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24*7 Claims

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Up to 90% Off with PAYD Add-On
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Manasvi Gupta

Written By

Manasvi Gupta

Manasvi Gupta

Manasvi Gupta

Content Writer

Storyteller at heart, Manasvi brings 4 years of content and marketing experience to Digit. Whether it's writing SEO-optimised articles or a researched and insightful blog, she strives to transform ideas into creating impactful and engaging content.

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Reviewed by:

Mayur Kacholiya

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Mayur Kacholiya

Product Head - Motor

Mayur specializes in motor insurance and is responsible for overseeing the development and management of motor insurance products. With expertise in product strategy and market analysis, he focuses on developing customer-centric insurance solutions.

Pay As You Drive (PAYD) Add-on Cover with Digit Car Insurance

Listen to the Summary

What is the ‘Pay As You Drive’ Add-on Cover?

what is pay as you drive add-on cover

What is the ‘Pay As You Drive’ Add-on Cover?

As the name suggests, the Pay As You Drive (PAYD) add-on is a cover you can opt for in your car insurance (when buying a comprehensive or own damage car insurance) if you drive less than 10,000 km/year. This gives you a discount on your own damage premium, of up to 85%, based on how much you drive in a year.

Launched in 2022, Digit Insurance was the first insurer to offer this feature!

While this was initially for those who drive less than 15,000 km/year, we are now upping the game by offering even further discounts for people who drive less than 10,000 km/year. 😎

Note: Pay As You Drive add-on cover has been filed as Digit Private Car Pay As You Drive with Insurance Regulatory and Development Authority (IRDA) with UIN number IRDAN158RP0005V01201718/A0009V01202223

Why Customers Trust Digit Car Insurance?

stats

1.2 Crore+

Policies Sold

75 Lacs+

Cars Insured

8 Lacs+

Claims Settled

3000 Crore+

Paid-in Claims

96% Claims Settled

FY'25

9000+

Cashless Garages

Disclaimer: "The total no of claims settled since inception till 31st December 2024" Disclaimer: "The total no of unique private car vehicles insured since inception till 31st December 2024" Disclaimer: "The total amount of claims paid since inception till 31st December 2024" Disclaimer: This Claim Settlement Ratio is calculated for Overall Motor line of business of Digit. CSR Is calculated for FY'25. CSR Ratio is count of (Claims paid + Claims Closed) / (Claims O/S at Start + Claims Reported - Claims O/S at End) |"Disclaimer: The total count of network garages as of 31st December 2024"

With Digit Car Insurance, If You Drive Less, You Pay Less!

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How Does the Pay As You Drive Add-on Work?

how does the pay as you drive work

How Does the Pay As You Drive Add-on Work?

If you’re thinking this will need some fancy declarations or a new-gen tech device to track your readings, you’re wrong. (You know we’re all about keeping things simple, right? 😉).

We tried to keep the approach super simple for you to get this discount. It is not based on your future driving behaviour, telematics or any app that will track your driving skills; rather we take into account the average kilometers driven by you per year.

This can be easily checked just by looking at your odometer reading and dividing that by how old your car is!

While buying your car insurance policy with us, we will ask you to take a video of your car and odometer reading (don’t worry, it’s all simple, and within the app). 

That’s it! 

This is how we will check if you drive less 😊

Difference between Comprehensive Car Insurance Policy and PAYD Cover

A car insurance policy is no doubt a great way to protect your car; however, you can always enhance its benefits using add-ons, like Pay As You Drive cover.

To know better, read here the difference between comprehensive car insurance policy and PAYD Cover. 

Features Pay as You Drive Cover Comprehensive Insurance
Benefit  PAYD is usage-based, allowing you to save up to 85% on your car insurance, if you drive under 10,000 km/year.  It is a complete insurance plan that protects your car from own damage and third-party liabilities.  
Premium  You have to pay the premium based on how much distance is covered by the car.  Its premium depends on various factors like the car’s make and model, age, location, add-ons, and Insured Declared Value (IDV). 
Customisation  The PAYD cover is customisable as you can select the plan as per your preferred distance slab. it allows you to insure your car based on your usage  In this, you can only customise the IDV and add-ons offered by your insurer.  
Claims  You can raise a claim till you are within the selected kilometers range.  You can raise a claim till your policy is active.  
Validity  Typically, PAYD cover’s validity is one year. However, it may differ from insurer to insurer.  There are multiple options available. You can choose if you have chosen a one-year policy, the policy’s duration will be one year, irrespective of the car’s usage. 

What are the Features of Pay As You Drive Add-on?

Here’s what you’ll get with the Pay as You Drive car insurance add-on.

Lower Premium

PAYD add-on rewards people who drive less with significantly lower premiums because the risk is reduced. Therefore, if you drive less, you pay less with PAYD, and you will have to pay a lower premium than a standard comprehensive or own damage policy.

More Savings

Standard car insurance charges premium based on various factors like car type, age, and location; however, PAYD saves you from all that. With PAYD add-on cover, you can save up to 85% on your own damage car insurance premium, since you only have to pay as per your car usage.

 Flexible Coverage

PAYD add-on allows you to tailor your insurance as per your driving habits. With PAYD you can choose a mileage range that is the most suitable as per your usage. So, with PAYD you get the flexibility as you can top-up the kilometers range if you feel you are about to cross the declared distance travelled.

Customization

Pay As You Drive add-on puts you in control of your car insurance costs, as by monitoring your driving patterns, you can customise the PAYD in the insurance policy based on the estimated distance to be covered by your insured car.

Validity

PAYD is offered as an add-on cover with standard car insurance policy. So, its validity also aligns with the validity of your insurance policy, which is generally one year. However, it can vary based on the plan you have opted for.

Who is it Perfect for?

Digit’s Car Insurance with the Pay-As-You-Drive Car add-on can be a perfect choice if you fall under any of these categories:

daily office commuters

Daily Office Commuters

If you live in any Indian city, from small towns to big metros, and need to commute daily, chances are you drive less than 10,000 km! Think about it, even if you live 10-12 km away, you’re still only covering up to 7k km a year. 🤔

the work from home tribe

The Work from Home Tribe

WFH/Hybrid work = a parked car. Maybe your car is just your weekend vibe when you’re spending most days working from home. In this case, you are not only driving less but rather, veryyyy less.

team public transport

Team Public Transport

Public transport is bae when commutes are such a hassle these days. If you’d rather be cruising along the metro, train, cab or auto despite having a car back home, this car insurance could be perfect for you too.

second car owners

Second Car Owners

There’s the once-in-a-while use car and then there’s the “school pick-up and drop, everyday” car. For people with more than one car that doesn’t cover a lot of distance (or rather the kms are shared between the cars), the pay-as-you drive add-on could be perfect for your cars!

multiple vehicle owners

Multiple Vehicle Owners

Own a car and a bike but end up using the bike more? We get it, ‘Citylife.’ If your car is primarily for special occasions, enjoy peace of mind with a car insurance that won’t cost you much.

retired explorers

Retired Explorers

Retirees who've swapped their daily commutes for leisurely drives can now enjoy rewards for their reduced mileage😊

urban city dwellers

Urban City Dwellers

Living in a metro city means spending a lot of time on the road but still not really driving much. Your commutes may seem long (thanks to the traffic!) but if you do the math, you probably don’t cover that much. Check your kilometre reading to be sure. 😊

Digit’s Motor Insurance Claim Settlement Ratio is 96% for FY’25

Digit’s Motor Insurance Claim Settlement Ratio is 96% for FY’25

When it came to motor insurance specifically, Digit showcased a high-efficiency Claims Settlement Ratio (CSR), with 96% of motor claims settled seamlessly and we make this simple with:

  • Smartphone-enabled self-inspection process, with which you can file your claim in minutes!

  • Cashless Claims at over 9000 garages in India, so you can get your two-wheeler fixed without stress. 

  • Everything digital and paperless. No need for hard copies—just upload everything on our app, and you're all set!

What Our Customers Have to Say about Us

4.7/5

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(250K + Customer Ratings)

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quote 6 Dec 2024
a great pleasure to be affiliated with you , Had met an accident and got the damaged parts replaced within a day after raising the claim . Thank You
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Shaaz Suhail Salafi

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quote 13 Dec 2024
Very good service. Within two minutes I have renewed my car insurance online.
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Ajay Bharade

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quote 13 Dec 2024
Dear For todays world If any One wants to open a fresh Vehicle Insurance Policy which has all the transparency users frndly Plus the staff is very cooperative hats off. Wishing God bless for all yr future Endeavor 's. Sr Citizen-Policy-Investor
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DinShaw Sahukar

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quote 20 Dec 2024
Quick reaction on Road side assistance and continuous follow up till resolution. Happy with assistance in late night hours.
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Abhishek Sharma

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quote 13 Aug 2024
I had issue with the motor insurance policy and wanted to upgrade it. The customer care executive had enough patients to explain me everything point to point. Thanks a lot Sudip.
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Pratheesh R

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Key Features of Digit's Car Insurance Policy

Key Features

Digit Benefit

Premium

Starting from ₹2094

No Claim Bonus

Up to 50% Discount

Customizable Add-Ons

11 Add-ons available

Cashless Repairs

Available at 9000+ Garages with Doorstep Pickup & Drop

Claim Process

Smartphone-enabled Claim process. Can be done online within 7 minutes!

Own Damage Cover

Available

Damages to Third-Party

Unlimited Liability for Personal Damages, Up to 7.5 Lakhs for Property/Vehicle Damages

How is AI making Digit’s Motor Insurance Claim Process Faster & Smarter

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How is AI making Digit’s Motor Insurance Claim Process Faster & Smarter

At Digit, we believe filing a motor insurance claim should be simple, not stressful. That’s why we’ve built intelligent automation into every step of the process—so you can get back on the road, faster.

  • AI That Sees What You See: When you upload a video of the damage through our app, our AI doesn’t just watch—it analyses. Using advanced image recognition, it assesses the extent of the damage, classifies it, and helps determine the next steps. This means quicker evaluations, fewer delays, and a smoother experience for you.
  • Automated Document Processing: From inspection reports to claim forms, our AI systems automatically sort and process your documents. This reduces manual effort, minimises errors, and speeds up approvals. And with a human-in-the-loop approach, we ensure every claim is handled with both precision and empathy.
  • Automation That Works Behind the Scenes: Our systems also fetch claim details directly from partner platforms, eliminating the need for repetitive data entry. Whether it’s Bulk Policy Issuance or real-time claim registration, automation helps us move faster—so you don’t have to wait.

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67% Car Repair Work Approvals Done within 12 Hours

67% Car Repair Work Approvals Done within 12 Hours

In H2 FY25, our average car repair approval time was 14 hours and 46 minutes, with 67% of approvals completed within 12 hours. Only a few cases experienced longer wait times, typically due to complex assessments or the need for additional documentation, highlighting our commitment to minimising delays and maximising efficiency.

Rest assured, we carefully monitor every step to ensure your car is back on the road as swiftly as possible!

Digit Settled 9.16 Lakh Claims with 99.9950% Accuracy in FY'25

The below data is for all the products as given in the table below.

Settled 9.16 Lakh Claims Settled

Settled 9.16 Lakh Claims Settled

That’s how many times we showed up for our customers in FY 2024–25. Behind each of those numbers is a mishap, and we were right there, making sure things got sorted quickly. 

Out of these, nearly ₹6.52 lakh were motor insurance claims alone—proof that we’re there when it matters most, whether it’s something trivial or serious. 

₹4,622 Crore Paid in Claims

₹4,622 Crore Paid in Claims

From minor hiccups to major emergencies, we made sure our customers didn’t have to carry the financial burden alone. Quick settlements, zero confusion, and real peace of mind. 

Of this, ₹2,199 crore was paid out under motor insurance, covering everything from accidents to unexpected situations like rat damage.

99.9950% Claims Accuracy

99.9950% Claims Accuracy

Out of 9.16 lakh claims in FY 2024–25, only 256 were escalated to the Hon’ble Ombudsman^. Out of which only 46# were escalated and ruled in favour of the customer. This significantly proves the claim's accuracy rate of 99.9950%.

For Motor Claims, out of 256 escalated claims for Digit, just 124 were motor-related. By year-end, 104 motor claims were closed, with 28 resolved through mediation. Only 26 health claim decisions went in favour of customers.

Ombudsman Complaints for FY 2024-25

The below information is a summary of escalated claim cases reviewed by the Hon’ble Ombudsman in FY 2024–25. 

LOB Total Claims Paid (in number) Total Claims Amounts Settled Total Complaints that went to Ombudsman Total Complaints where final decision was given Total Complaints Settled via Mediation Total Decisions in favour of Customer
Health (including PA, travel) 2,18,082 ₹1,374.64 Crore 110 86 21 18
Motor(OD + TP, Including theft, PA) 6,51,954 ₹2,199.58 Crore 124 104 28 26
Other LOBs (miscellaneous) 45,642 ₹1,047.34 Crore 22 17 3 3
Grand Total 9,15,678 ₹4,621.56 Crore 256 207 52 47

Disclaimer: ^This data pertains to cases reported to various offices of the Hon’ble Insurance Ombudsman. Customers have the option to approach the Consumer forum as well; #Only includes complaints arising from claims. The company had a total of 11 complaints arising from non-claims, i.e., policy-related grievances (5 won, 2 settled, 1 lost, and 3 outstanding). One non-claim complaint where the decision went in favour of the complainant is not included in the numerator while calculating claims accuracy.

Interesting Claim Stories & Insights from Digit Customers

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A Digit Car Insurance customer received a total loss claim of ₹48.70 Lakh in Mumbai

In a recent case from Mumbai, one of our policyholders experienced a total loss after their private car sustained severe damage. Fortunately, the vehicle was insured, and we processed a claim payout of ₹48.70 lakh. This case highlights the importance of having dependable insurance coverage to stay prepared for life’s unexpected turns.
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Digit Settled a third party claim worth ₹ 1.5 crores in Raipur, Chhattisgarh

In a recent case from Raipur, a private car was involved in an accident that tragically resulted in a fatality. While such incidents are deeply distressing, they also bring significant financial and legal responsibilities. Fortunately, the vehicle was covered under our third-party insurance policy, which enabled a compensation payout of ₹1.5 crore to the affected party.

This case highlights the critical importance of third-party liability coverage in motor insurance, offering essential financial protection during life’s most difficult moments.

Flood Damage Claims Cross ₹95 Crore, with ₹3 Crore Settled in Azitnagar

When we think of car insurance, we often imagine accidents or theft. But sometimes, the most significant threats come from nature itself. Azitnagar in the Krishna district, had 529 flood-related claims filed this year, with payouts exceeding ₹3 crore. Across the country, we paid out more than ₹95 crore in flood and inundation claims.
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Seven Accident Claims in One Year on One Car, All Approved

One customer in Patna had a year they won’t forget. Their brand-new Kia Carens was involved in not one, not two, but seven accidents. Six happened while driving, and one happened while the car was parked. It was an actual test of their insurance policy and it passed. Every claim was covered, proving that dependable coverage can make all the difference when things go wrong again and again.

Premium Protection For Premium Vehicles

This year, we received some standout premium payments across different vehicle types. A Ferrari topped the list in the four-wheeler category with a premium of ₹8.04 lakh. In the two-wheeler segment, a Hayabusa was insured with a premium of ₹44,000. And in the commercial vehicle category, a Volvo L150 wheel loader was covered with a premium of ₹3.53 lakh. This highlights how our insurance scales to match the value and purpose of every vehicle, whether it’s built for speed or style
bond number plate

Over 670+ Vehicles Insured with ‘007’ Registration

This year, over 670 vehicles insured with us proudly carried the iconic Bond number “007”. Among them, one standout customer paid a premium of ₹5 lakh. This highlights how our insurance supports unique preferences while ensuring complete coverage.

How to Check if You Drive Less?

how to check if you drive less

How to Check if You Drive Less?

First things first, get into that driver’s seat and follow the below steps:

Step 1: In your car, look for a small rectangle usually containing five or six numbers near the speedometer. If your car is newer, it may be digital. If your car is older or less modern, it will be a physical or mechanical set of numbers.

Step 2: Now, simply make a note of the number displayed. This is the number of kilometres your car driven in its life.

Step 3: Divide the number by how old your car is. For example, say your car reading is around 45,000 km and your car is 6 years old, then 45,000/6 years would be 7500 km. This means, your car is driven for an average of 7500 km/year.

And yeah, that's about it! That’s how you can find out how much you drive and if this car insurance with the pay-as-you-drive add-on could be perfect for you too!

Check your kilometre reading today to check if you drive less too! 😊

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What if the Declared Car Usage Limit is Exhausted?

declared car usage limit is exhausted

What if the Declared Car Usage Limit is Exhausted?

If your insured car crosses the declared usage limit of 10,000 km, you will have to pay an additional premium if you want to add the kilometres.

Also, remember that if your car insurance policy expires or if you have covered the declared distance, you will not be covered under the PAYD cover policy.

FAQs about Pay As You Drive Car Insurance