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Pay As You Drive (PAYD) Add-on Cover with Digit Car Insurance
Welcome to the future of car insurance – where you're in control of your coverage and your costs. Introducing Digit Car Insurance with the Pay-As-You-Drive Car add-on, with which if you drive less, you pay less!
We believe that driving less should lead to paying less, and with our innovative approach, you can save up to 85% on your car insurance, if you drive under 10,000 km/year.
So, say goodbye to one-size-fits-all policies and hello to insurance that adapts to your lifestyle😎
Listen to the Summary
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
With Digit Car Insurance, If You Drive Less, You Pay Less!
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.
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.
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.
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.
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.
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.
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 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
(250K + Customer Ratings)
4.9/5
4.7/5
Digit Car Insurance in News!
Monsoon Car Woes: Protect Your Car With Comprehensive Motor Insurance And Add-Ons
- 19 Oct 2025
- Business Insider
As EV cover picks pace, battery coverage is the name of the game
- 18 Apr 2025
- Times of India
Go Digit posts 3x jump in Q2 net profit; gross premium collected at Rs 2,368 crore
- 24 Oct 2024
- The Economic Times
Drive less, pay less: Why 'Pay as You Drive' insurance may be right for you
- 21 Aug 2024
- Business Standard
Pay As You Drive (PAYD): Motor insurance ad-on that customises your premium as per driving distance
- 1 Mar 2024
- Zee Business
Dogs, coconuts and monkeys: Insure your vehicles from their mayhem right now!
- 20 June 2024
- Business Insider
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
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.
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
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
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
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.
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
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.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.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 styleOver 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?
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.
Check your kilometre reading today to check if you drive less too! 😊
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
What is Pay as You Drive insurance?
Pay as You Drive insurance is an add-on cover that allows you to pay car insurance premium based on the distance travelled, if it is within 10,000 km.
Do I need any documents to buy Pay As You Drive insurance plan?
With Digit, you will only need to provide your car details and upload some photos of your car’s odometer, ID proof for KYC process, and you are good to go.
Is getting PAYD insurance a good idea?
Yes, it is a good option for those who don’t drive their vehicle frequently, as PAYD insurance’s premium depends on the distance covered by the car.
When can I raise a claim under Pay As You Drive car insurance policy?
You can raise a claim under PAYD till your vehicle has travelled the distance within the usage limit mentioned in the policy, which is generally 10,000 km. If the limit is crossed, you might be asked to make a co-payment by the insurer.
Will any device be installed in my car if I get Pay As You Drive plan?
No, there is no need to install any device. Digit only requires photos of your odometer to avail the benefit under PAYD add-on cover.
Can I do a kilometres top-up under the PAYD add-on?
Yes, if under your current policy you have exceeded the opted range of kilometres, then you can top up as per your insurer’s terms and conditions.
How does Digit calculate the number of kilometres I’ve driven?
At Digit, we determine the distance travelled based on your odometer reading. We do not install any devices in your car for the same.