Pay As You Drive Car Insurance

Name: Pay As You Drive Car Insurance
Brand: IndusInd General Insurance
Rating: 4.9 (310 reviews)

IndusInd Pay-As-You-Drive Car Insurance (formerly Reliance Pay-As-You-Drive Car Insurance) is a unique usage-based cover that ensures you pay only for the kilometres you drive. With this add-on, you pay comparatively lower premiums than regular insurance.

You declare the kilometres you will cover in a year and pay premiums only for those kilometres. We offer a yearly driving limit of 2,500–10,500 km and a 500 km top-up option, so you can easily extend your coverage mid-policy using the IndusInd Insurance app. We also offer a 125 km grace limit* to ensure you don’t abruptly lose coverage if you use up your base driving limit.

For example, if you drive an average of 2,500 km a year. You pay only for the 2,500 km your car drives. It will cost significantly less than standard car insurance. As the first insurance company to introduce this concept, we offer several additional benefits, like the ability to choose a top-up option with extra kms and cashless claims at over 11,000 network garages*.

What is Pay As You Drive Car Insurance?

Pay As You Drive (PAYD) Car Insurance is a mileage-based add-on offered with our standard comprehensive car insurance and own damage (OD) car policy. The own damage premium is calculated based on the number of kilometres driven during the policy period, instead of a fixed amount.

Despite its usage-based pricing, IndusInd Pay-As-You-Drive auto insurance offers all the standard protections of a comprehensive car insurance policy if taken as an add-on with a comprehensive plan, including protection against third-party liability, own damage, theft, and natural disasters. The key difference is how much you pay, as it depends on how much you drive.

Pay As You Drive is a good option for people who do not use their car much but still want full insurance coverage. It’s popular among households with multiple cars, professionals who work close to home, and those who prefer to pay only for actual use.

For instance, the demand for PAYD insurance increased by 25% in 2024, with 3 out of 4 customers renewing their Pay As You Drive plans. They reported that 30% - 50% of customers choose PAYD insurance over other plans.
This is because it allows you to pay based on how much you actually drive, which can lower your premium. It also encourages more thoughtful car use and helps reduce unnecessary driving.

How Does IndusInd Pay As You Drive Car Insurance Work?

When you buy IndusInd Limit Sure - Pay As You Drive, you must select an estimated distance you will drive during the policy year. This estimated distance is called "Available Kilometres" or "Kilometre Limit" and can be set in different slabs, ranging from 2,500 km to 10,500 km*. It can be increased in multiples of 1,000.

Based on your chosen Kilometre Limit, you get a discount on your Own Damage policy. Keep in mind that the lower your Kilometre Limit, the greater the discount you will get. Also, you must declare your current odometer reading when you buy and renew the policy. It will help determine whether you have stayed within the Kilometre Limit or exceeded it.

What Happens if You Exceed Your Kilometre Limit?

During The Policy Period

If you are nearing your selected kilometre limit during the policy period, you can buy a top-up. It keeps your pay-as-you-drive car insurance cover active without any break in benefits. You also get a grace limit, which allows you some time to top up the kilometres to your plan.

You do not need to change your plan or pay a penalty. The top-up process is easy and can be done online via our website or the IndusInd Insurance app.

At The Time of Claim

If you exceed your declared usage and do not buy a top-up, your OD claim will be inadmissible under the Pay-As-You-Drive policy. However, you have the option to top up the drive limit before exceeding the limit.

If you miss topping up the drive limit before the grace limit expires, OD cover can be restored for 10% of the annual OD premium. Without it, the OD claims after exceeding the drive limit are inadmissible.

At Renewal

If you have reached or crossed your kilometre limit, it is important to share your updated odometer reading at the time of renewal. Without it, you may not be able to continue with PAYD benefits or receive related discounts.

You can choose a new slab or move to a standard plan. Keeping your reading accurate helps avoid higher premiums and keeps your coverage in line with how much you actually drive.

Impact on Premium Discounts

Exceeding your kilometre limit without topping up may reduce your eligibility for renewal discounts. Consistent overuse signals a mismatch between declared and actual usage, which could lead to higher premiums or fewer benefits in the following year.

Choosing the correct kilometre slab from the start helps maintain cost-efficiency and earn policy rewards during renewals.

Odometer Verification at Key Stages

IndusInd General Insurance may request odometer photos at purchase, during mid-term top-ups, for claims, or at renewal. It ensures accurate tracking of your usage.

Submitting timely and clear odometer readings helps maintain transparency and prevents complications in claim settlement or renewal processing. This step supports fair pricing and builds trust between you and the insurer.

Benefits of PAYD Insurance

Covers Your Car’s Damages

Get full car coverage at a lower cost with our Pay As You Drive add-on. Rest assured with protection from accidents, theft and disasters.

Pay Only for The Kilometres

Choose your yearly distance from 2,500 km, in 1,000 km increments up to 10,500 km, and pay only for the kilometres you select.

Free Grace Kilometres

Family road trip takes you 30 km over your 8,500 km limit? No problem! You get upto 5% of your selected plan or 125 km free (whichever is lower) at no extra cost.

Top Up More Kilometres

If you run out of the Available Kilometres within a year, you can easily purchase a top-up to replenish your exhausted limit.

Comprehensive List of Add-Ons

Enhance your coverage with 15+ add-ons, including nil depreciation, return-to-invoice, including 3 exclusive EV add-ons, with PAYD insurance.

Key Features of IndusInd Pay As You Drive Car Insurance

IndusInd insurance offers ease of choosing a comprehensive car insurance policy with all the benefits, at lower costs when you opt for preferred kilometres. Here are some key features to consider when opting for Pay-As-You-Drive Insurance:

Features	Description
Coverage	Any damage to your car, including natural disasters, theft, etc., within the available km limit
Available Kilometres	2,500 – 10,500 km per year; increase in multiples of 1,000*
Grace Kilometres	Upto 5% or 125 km (whichever is lower)
Top Up Limit	Additional km can be added in multiples of 500 if you exceed your limit.
PA Cover (for Owner-Driver)	Up to ₹15 lakhs. Available Separately and Bundled
Third-Party Coverage	Available separately or bundled with a comprehensive plan
Discount	Up to 90%*
NCB Discount	Up to 50%
Other Discounts	2.5% on OD Component for Anti-Theft Devices + 5% on OD Component for Recognised Automobile Association Membership
Network Garages	Available at 11,000+* Cashless Garages
Easy Odometer Declaration	Upload photo/video of your car’s odometer reading
Buy/Renew Online	Instant and Paperless via the website or the IndusInd Insurance App

Disclaimer: Please refer to the official policy documents for detailed information.

Coverage Under IndusInd Pay As You Drive Car Insurance

What is covered? (Inclusions)

Accidents and Collisions: Damage to the car due to road accidents or collisions with other vehicles or property

Third-Party Damages: Since this add-on is with comprehensive insurance, damages to someone’s property, vehicle, or person are covered only if PAYD is opted with a comprehensive plan.

Natural and Man-Made Disasters: Damage due to natural disasters– earthquakes, typhoons, floods, cyclones, thunderstorms, etc., and man-made tragedies such as riots, strikes, etc.

Fire or Explosion: Damage to the insured car from fire or explosion.

Theft: Total car theft with no recovery of the stolen car will be covered under the policy.

What is not covered? (Exclusions)

Depreciation: Depreciation of car parts typically isn't covered, but we do cover it under the nil dep add-on.

Law Violations & Outside Coverage Zone: We cover all accidents except ones that arise out of breaking the law or ones that occur outside of India's borders.

Disclaimer: For the complete list of Inclusions and Exclusions, please refer to the policy wording here

Who Should Buy IndusInd Pay As You Drive Insurance?

Owners of Multiple Cars

If you own multiple vehicles, you may not use your car as often. In these cases, it’s less expensive to pay for car insurance based on actual usage.

Daily Office Commuters

If your main travel is to and from the office each day, it would add up to a few thousand kilometres a year. PAYD can help you save on premiums.

Public Transport Users

If you prefer commuting through public transport and use your car for infrequent, fun rides, then PAYD is the best choice for you.

IndusInd Pay As You Drive vs Other Car Insurance Plans

Parameters	Pay As You Drive Car Insurance	Third-party Car Insurance	Own Damage Car Insurance
Damage to Your Own Vehicle
Customise IDV
Customise Kilometre Limit
Damage due to Fire
Damage due to Natural Calamities
Losses Due to Theft
Damage to Third Party

Why US

Why 8 Crore+ Policyholders Trust Us?

Get personalised premium rates based on your car usage with the IndusInd Pay As You Drive Car Insurance (Limit Pay Sure). This innovative add-on is ideal for occasional car users, those who work from home, or those who own multiple vehicles. So, if you don’t want to pay a flat rate for car insurance, choose our Pay-as-you-drive car insurance cover!

Brand - Car

15+ Add-On Covers Available

Extra covers for enhanced protection

Up to 3 Years Coverage*

Get long and short-term coverage with us

Video Claims Feature on Our App

File quick cashless claims via mobile

24/7 Customer Assistance*

Get support from anywhere in India

Claims Process for IndusInd Pay As You Drive Car Insurance

Cashless

Immediately inform us within 24 hours or log into the Indusind insurance app. to register your claim.

Visit a network garage for repairs. We will send a surveyor to conduct a vehicle inspection to assess the extent of damage.

Submit all your documents and wait for our team's approval of your claims. This can take 7 up to days.

Upon approval of your claim, we settle the bill directly with the garage and drop off your vehicle at your registered address.

Reimbursement

Immediately inform us within 24 hours. You can also log into the IndusInd Insurance app. for instant claim registration.

Visit any garage of your choice to get your car repaired. Pay the repair bills and keep all bills and receipts.

Register your claim on our website or on the Indusind insurance app. Fill out the claims form and upload it with your other documents.

Upon approval of your claim, we will transfer the claim amount directly to your bank account.

*Disclaimer: Policyholders are still required to pay a mandatory deductible and any voluntary co-payment or deductible amounts for cashless claims before we cover the rest of the claim amount.

Documents Required for IndusInd Pay As You Drive Car Insurance

For Policy Purchase

A copy of the vehicle registration certificate to confirm ownership and vehicle specifications.
A copy of the existing motor insurance policy for renewals or policy continuity checks.
A valid driving licence of the primary driver for eligibility verification.
Identity proof, such as an Aadhaar card or a PAN card, to confirm personal details.
Address proof to ensure correct communication and policy servicing.
Recent photographs of the vehicle to assess its current condition.
Bank account details or a cancelled cheque for premium payments and refunds.

For Claim Settlement

A duly filled and signed claim form to formally initiate the claim process.
A copy of the Pay As You Drive policy document to validate active coverage.
A clear copy of the vehicle registration certificate for ownership verification.
A valid driving licence copy of the person driving at the time of the incident.
Identity and address proof of the policyholder for claim authentication.
A copy of the First Information Report when the incident involves theft or major accidents.
Original repair bills and detailed payment receipts to support the claimed amount.

Disclaimer: This is not an exhaustive list of documents required. You may be asked to provide any additional documents based on your unique circumstances and claim type.

How to Buy Pay As You Drive Insurance Online?

Enter Your Details

Enter your car’s registration number in the form on top.

Select PAYD Option

Select 'Pay As You Drive' and other add-ons to enhance coverage.

Check Premium

Enter these details in the calculator below to check your policy price.

Get PAYD Policy

Complete the CKYC process and pay to get your policy via email.

Homepage Curated Plans Client Extension

Car insurance starting at just ₹308 per month*!

Drive Less? Pay Less!

With Pay As You Drive, you can keep your premiums low based on actual usage alone! With the kilometres you carry forward, you continue to save with limited-use benefits!

Explore Now

Things to Keep in Mind Before Choosing Pay-As-You-Drive Insurance

Calculate your expected yearly driving distance by considering office commutes, errands, weekend drives and vacations. Choose a kilometre slab that comfortably covers your usage with a small buffer to avoid frequent top-ups.

If you have more than one car, use PAYD for the vehicle that is driven the least. It allows you to maximise premium savings while still enjoying the benefits of full comprehensive coverage.

Be ready to submit a clear odometer photo or video at purchase, renewal, claims, and top-up. Following this requirement ensures accurate tracking of your usage and smooth claim or policy processing.

If your driving exceeds the declared slab, you can purchase additional kilometres mid-policy. Understand how and when top-ups are allowed to maintain continuous coverage and avoid any claim-related deductions.

IndusInd PAYD includes 125 grace kilometres that protect you if you slightly exceed your limit. However, they are limited, so it is best to monitor your usage and top up before the grace limit is over.

Unused kilometres can be rolled over to the next policy year upon renewal. Such a feature adds value for low-mileage users who consistently drive below their selected kilometre slab.

The IndusInd Insurance app offers features like document upload, kilometre tracking, and digital claims. It simplifies policy management and reduces the need for physical paperwork or branch visits.

Check if your preferred garage is part of the cashless network. It ensures faster repairs and claim settlements, especially in the case of accidents or unexpected vehicle damage.

Think ahead about potential changes such as a new job, relocation, or lifestyle shifts. Choose a plan that can be adjusted through top-ups or flexible renewal slab options.

Evaluate pay-as-you-drive policy against regular comprehensive insurance based on your usage and budget. Make sure the plan you choose aligns with your long-term insurance goals and driving habits.

Key Takeaways

With the demand for personalised, customer-centric motor insurance, Pay As You Drive insurance is quickly gaining popularity among most car owners in India. This is because Pay As You Drive insurance allows you to pay for premiums based on actual mileage, making it 40%—60% cheaper than regular motor insurance plans.

With IndusInd Limit Sure - Pay As You Drive Car Insurance (formerly known as Reliance Limit Sure - Pay As You Drive Car Insurance), your minimum limit starts at 2,500 km and can be increased in multiples of 1,000*, up to 10,500 km*. For example, since the starting limit is at 2,500 km, you can set your per year driving limits as 3,500 km, 4,500 km, 5,500 km, 6,500 km, etc., up to 10,500 km*.

You also get a top-up nin multiples of 1000 km and 125 grace km, so you never run out of coverage. Plus, you can also carry forward unused kilometres to the next year. So if your driving limit was 5,500 km for the year and you only used 4,500 km, you can carry forward the excess 1,000 km to the next year on renewal.

Whether you work from home, live close to your office, rely primarily on public transport, are a homemaker or someone who owns multiple cars, you’ll find that IndusInd Pay As You Drive Car Insurance offers comprehensive car insurance coverage at a fraction of the cost!

Relevant Links for Car Insurance

Car Insurance

Third Party Insurance

Comprehensive Insurance

Own Damage Car Insurance

Long Term Car Insurance

Car Insurance for Top Car Brands & Model

Tata Car Insurance

Maruti Car Insurance

Hyundai Car Insurance

Toyota Car Insurance

Mahindra Car Insurance

Creta Insurance

Author - Location Car Insurance

IndusInd General Insurance

Aapke Protection ka All-rounder

IndusInd General Insurance is one of the leading general insurance companies in India. The Company offers a well-rounded and comprehensive bouquet of products including Motor Insurance, Health Insurance, and Travel Insurance, and offers customised solutions to meet the protection needs of each customer.

Voices of Trust

Stories shared by our happy customers!

Total Average Rating

Based on ratings

View All

Asset Publisher

4.8 ★ ★ ★ ★ ★ (2105)

Roshan Jha

Meerut

Seamless digital experience

Quick and easy! The policy details were clearly mentioned, making it simple to choose the right one.

Suman

Noida

Limited policy options

A fair and simple process. The Car insurance covers the basics well.

Aniket

Chirawa

Value for money

Quick policy issuance

The journey of purchasing Car insurance from Reliance (now IndusInd) felt effortless and user-friendly. It met my requirements well and felt tailored to my needs. No complementary product was necessary for me at this stage.

Lonka Gopal Reddy

Vizianagaram

Quick policy issuance

I recently purchased my Car insurance from Reliance (now IndusInd) and found the experience very smooth. I felt that my protection needs were well addressed with this policy. I did not feel the need for any other products at this time.

Buying a Car policy through the platform of Reliance Insurance Company (now IndusInd Insurance Company) was straightforward and quick. It aligns well with what I needed from an insurance policy. No complementary product was necessary for me at this stage. I'm happy with how everything went and feel secure with my policy.

A Lakshmana Murty

Visakhapatnam

Quick policy issuance

The journey of purchasing Car insurance from Reliance Insurance Company (now IndusInd Insurance Company) felt effortless and user-friendly. It met my requirements well and felt tailored to my needs. I am satisfied with the main policy and don't see a need for extras.

Homepage alternate CX

Pay As You Drive Insurance

AI Content Summarizer

Asset Publisher

Frequently Asked Questions (FAQs)

What are some things to keep in mind before buying pay-as-you-drive insurance?

Your driving habits are the most important factor to consider before buying PAYD insurance. Do you use your car often, or do you use it to commute to work every day? – It’s best to ask yourself these questions since PAYD premiums are based on usage. So, if you answered no to any of these questions and use your car occasionally, pay-as-you-drive insurance might be a fit for you. Also, look into how much you can customise your kilometre limit and how big a discount you’re getting on your premiums.

Does IndusInd Limit Sure - Pay As You Drive cover accidents and theft?

Yes, since IndusInd Limit Sure (formerly known as Reliance Limit Sure) —Pay As You Drive is an add-on cover for the Own Damage insurance plan. Your Own Damage policy covers damage to your vehicle caused by an accident and even theft.

How is the IndusInd Limit Sure - Pay As You Drive Premium Calculated?

The premium is calculated based on the mutually agreed-upon kilometres you will cover within the specified term. It is also known as “Available Kilometres”. The total number of kilometres you have driven is determined based on your odometer’s reading.

How long does the IndusInd Limit Sure - Pay As You Drive add-on last?

The add-on will cover you for the standard duration of 12 months or more, depending on your policy period.

Can I use my unused kilometres in the next policy year?

Yes, if you have unused kilometres, you can carry them over to the next policy year at the time of renewal. This is known as the Carry-Forward Limit. For example, let’s say you purchased the add-on with a 10,000-kilometre limit. However, you only used 7,000 kilometres during the policy year. The add-on lets you carry forward the remaining 3,000 kilometres to the next policy year when you renew your policy and enjoy the extra coverage.

Are add-ons like zero depreciation available with PAYD?

Yes, add-ons like zero depreciation are available with our pay-as-you-drive insurance. Depreciation is not covered under standard coverage, but you can opt for a nil depreciation add-on to get full claim value for replaced parts. Other useful add-ons, such as engine protection, accessories cover, and geo-extension, can also be added. These options allow you to customise your coverage without changing the usage-based structure of the policy.

What if the declared car usage limit is exhausted?

In this case, you can buy extra kilometres with our "Top Up Limit" feature to ensure you are covered for the rest of the policy period. We also offer Grace Kilometres* up to 125 km to give you enough time to renew your policy before your limit is exhausted. For example, if you have selected a Kilometre Limit of 3,500 km, but within a few months, your limit is exceeded. At this point, you can contact us and request a top-up limit to extend your coverage for the current policy year. If you have any unused kilometres, you can carry them over to the next policy year using the "Carry Forward Limit" option.

Is the claim process different for IndusInd Limit Sure - Pay As You Drive?

No, the own damage claim process is the same. You can register your IndusInd Limit Sure (formerly known as Reliance Limit Sure) - Pay As You Drive claim online.

Are any extra documents needed when buying an IndusInd Limit Sure - Pay As You Drive add-on?

No, all we need to buy IndusInd Limit Sure (formerly known as Reliance Limit Sure) — Pay As You Drive is your vehicle details and KYC documents.

How will you calculate the number of kilometres I have driven?

It will be determined based on your odometer reading. For example, your selected kilometre limit is 5,500 km, and your car’s odometer reading was 1,000 km when you bought the add-on. To receive the benefits, your car’s odometer should be 6,500 km at the end of the policy tenure.

Is pay-per-mile car insurance worth it?

Yes. Pay-as-you-drive car insurance is a cost-saving plan for occasional drivers and is also a great option for those on a limited budget.

Can I switch from PAYD to a standard comprehensive policy later?

Yes, you can switch from a pay-as-you-drive policy to a standard comprehensive plan at the time of renewal. If your driving habits change or your annual usage increases, switching ensures continuous coverage without kilometre restrictions. You will still have access to the same range of add-ons and benefits.