Pay as you drive insurance launched in Australia

Pay As You Drive from Real Insurance, is a new insurance product whereby qualified customers prepay their insurance based on the number of kilometres they plan to travel. 

The premium is calculated in two steps. First a base premium is calculated and then an additional premium is charged based on the number of kilometres the insured expects to travel. If the insured finds they are going to exceed their expected limit during the period of insurance Pay As You Drive offers a top up service.

"Motorists are changing their travel patterns to accommodate the rising cost of petrol, increased traffic congestion and strained household budgets. Environmentally conscious motorists are also cutting down on driving their cars in response to climate concerns" said Real Insurance CEO Mr Roger Grobler

"It was against this background, that we felt the time was right to offer a robust, comprehensive motor insurance product for which they pay only for the kilometres they plan to travel."

Real Insurance is part of the Hollard Group of companies which provides insurance products to more than 6 million policyholders worldwide.

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