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HDFC Pay as You Drive Add-on Cover: All You Need To Know

Published On Jul 13, 2023, Updated On Jul 31, 2023

HDFC Pay as You Drive Add-on Cover: All You Need To Know

Policyholders pay a premium against their car insurance plan. Some individuals do not use their vehicles for a long time and end up paying a premium every year. HDFC Pay as Your Drive add-on cover comes in handy during this situation. Keep reading to find out all about HDFC's Pay as You Drive add-on cover! 

What is the Pay as You Drive Add-on? 

Pay as You Drive insurance allows policyholders to reduce their own-damage premium based on the total number of kilometers driven in a policy year. To put it simply, it is a comprehensive car insurance plan that enables policyholders to save on their car insurance premiums. 

HDFC Pay as You Drive Add-on Cover: All You Need To Know

How Does Pay as You Drive Add-on Cover Work?

Kilometer-based add-ons work differently in comparison to standard car insurance plans. Understand the workings of pay-as-you-drive additional benefits in the section below: 

  • Firstly, the policyholder declares the use of their car, i.e., the total number of kilometres their car will cover in a particular year. 

  • Get the odometer reading done for your car. Upload a video of your vehicle before your car insurance plan expires. 

  • The plan will work on the basis of the customer's declaration. Therefore, the company will not install any telematics devices in the insured vehicle.

  • Once you are qualified for this plan, you can get up to a 10% discount on your own damage insurance premium. 

  • If the claim amount is specified within the limits, the insurer will settle your claim directly. However, if it exceeds the limit, you may have to pay a copayment during a claim settlement process. 

Features of Pay as You Drive Insurance Plan

Following are the features of kilometer-based car insurance coverage: 

  • The plan provides a discount to policyholders depending on the usage of the car with respect to the total kilometers covered, which is less than 15,000 km. 

  • The policyholder can avail of the benefit only if they upload a video of their vehicle before the policy expires. 

  • You can save up to 10% on your own damages car insurance premium. 

  • This plan is ideal for those who drive occasionally or have cars that are not frequently used.

Benefits of HDFC Pay as You Drive Kilometer Add-on 

HDFC's pay-as-you-drive add-on allows you to customize your car insurance plan. The policyholders can only pay a premium for the kilometers covered by the vehicle. Find more reasons to invest in the pay-as-you-drive additional benefits offered by the company:

  • No Limit on Miles Covered: HDFC pay-as-you-drive works in a simple way. You drive your car whenever required and pay a premium based on the miles covered. As a result, the policyholder must not adhere to certain kilometer limits. 

  • No Additional Fees: You may not have to pay any additional fees even if you drive extra kilometres as specified in the policy document during the policy tenure.

  • Extra Discounts: The policyholders can enjoy an additional discount of 5% on their own-damage premium for responsible driving. In simple terms, HDFC Ergo pays discounts to the policyholders for not making any claims during the policy tenure. 

  • Hassle-Free Claims: HDFC Ergo provides a smooth and hassle-free claim settlement process to its policyholders. In case of any loss or damage to your vehicle, simply visit the company’s official website to claim your car insurance plan. 

Who Should Buy a Pay-as-You Drive Insurance Plan? 

Car insurance up to third-party liabilities is mandatory for all vehicles in India. But some people who are looking for additional coverage can opt for pay-as-you-drive coverage. Here are some more individuals who can buy an HDFC kilometer add-on with the base car insurance plan: 

  • In case you are a seasonal driver and drive occasionally. 

  • If you own multiple cars and do not use all of them frequently. 

  • Individuals use public transportation to commute and rarely use their personal vehicles. 

  • It is suitable for those who usually use their vehicle to travel out of the station. 

Final Words 

In conclusion, the HDFC pay-as-you-drive insurance plan enables you to save a premium on own-damage car insurance. Policyholders can buy this plan through the company’s official website. Additionally, make sure that you upload videos of your car before the policy expires. 


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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