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Which Is Better: Pay As You Drive or Comprehensive Cover?


Written by Amit Jain

Updated Oct 16, 2023

Which Is Better: Pay As You Drive or Comprehensive Cover?

The Insurance Regulatory and Development Authority of India (IRDAI) keeps on introducing new amendments and features to provide the best insurance facilities to customers. One such feature introduced in the car insurance sector is “Pay as you drive.” It is an add-on cover that will help you save on premiums paid against your insurance plan. You should buy this add-on feature even if you are covered under a comprehensive motor insurance plan. You must be wondering, "Why?” In this article, we’ll help you understand the difference between pay-as-you-drive and comprehensive insurance. Continue reading to find out the details! 

Which Is Better: Pay As You Drive or Comprehensive Cover?

What Is Comprehensive Car Insurance? 

Comprehensive insurance is a type of insurance policy that provides coverage for both a loss and damage that happens to a third-party vehicle and your car. It provides coverage for third-party liabilities, damages, and the death of an individual.

What Is Pay As You Drive In Car Insurance? 

The Pay As You Drive add-on provides premium-saving advantages to the policyholders. With this add-on cover, you may have to pay a premium for your car insurance policy based on the number of miles you have driven your car. For example, suppose you have two cars, one of which is usually parked in the garage. Imagine paying a high premium for your parked car. So, here comes a pay-as-you-drive add-on policy to the rescue. If you have this cover, then you will pay a premium only for the kilometres for which you drive your car. 

Difference Between Comprehensive and Pay As You Drive In Car Insurance? 

The difference between pay-as-you-drive and comprehensive car insurance is discussed in the table below. 

Comparison Factor

Pay As You Drive Cover

Comprehensive Insurance


In the Indian market, this kind of car insurance is very new. It might not currently be offered by all companies that provide insurance.

Such a policy has been available in the Indian insurance market for several decades. It is a popular cover that has lasted a long time.


The payable car insurance premium is mostly based on the mileage completed by the car.

This vehicle insurance policy's payable premium is mostly determined by the car's make and model, age, location, add-ons, and insured declared value (IDV).


The duration of this coverage is determined by the number of kilometers driven and the coverage slab selected. 

Whether or not you use your car, there will be no impact on the duration of your policy. For example, if you choose one-year coverage, the policy will last one year regardless of how often you use the car.


You can file a claim as per the policy's terms and conditions as long as you have not crossed the chosen kilometer limit.

You may file a claim in accordance with the terms and conditions of your policy as long as your coverage has not expired.


In conclusion, you can buy car insurance online from InsuranceDekho. Moreover, it is wise to select a pay-as-you-drive add-on cover to ensure that you get comprehensive coverage at a low premium.

Also read: Traffic Rules to Follow in Delhi


Written by Amit Jain

Amit is an upcoming name in the motor industry be it new cars/ bikes or used ones. Amit in his last stint worked as a consultant for major Fortune 500 companies across the globe.&Read More


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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