Pay As You Drive Car Insurance

Perfect for people who drive less. Save up to 85% on your car insurance!
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Pay As You Drive (PAYD) Add-on Cover with Digit Car Insurance

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

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?

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.


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 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. 😊

How to Check if You Drive Less?

What if the Declared Car Usage Limit is Exhausted?

FAQs about Pay As You Drive Car Insurance