Once your policy is active, you will receive one extra month of DrivePlan Kilometres. These kilometres are called Grace Period Kilometres.
Over the first two months of the policy Pay As You Drive will monitor the distance travelled by the insured vehicle and will advise whether the vehicle is on the correct DrivePlan or not.
The Grace Period Kilometres will ensure that there are no nasty surprises if you have underestimated the insured car’s typical monthly mileage. The Grace Period Kilometres are free and any unused ones will expire at the end of the second month of your Pay As You Drive policy.
You will be required to install a Data Collection Device in the insured car. Hollard offers three Data collection devices:
- Hollard DriveMate, at R60 a month:
Where a Hollard DriveMate is compatible with the insured vehicle, a Sales Agent will offer the Hollard DriveMate. This provides Pay As You Drive with mileage and driver behaviour information only and does not extend to Stolen Vehicle Recovery services. The insured is not expected to enter into a fixed period contract and will simply need to return the Data Collection Device to Hollard when the policy is cancelled.
- Tracker SkyTrax Data, at R58 a month:
Pay As You Drive has negotiated a significant discount on the Tracker SkyTrax Data for our policyholders. You will be required to sign a 36 month contract with Tracker which contract period needs to be completed regardless whether you cancel the Pay As You Drive policy or not. Should you select this option, we will provide Tracker with your details and they will contact you to discuss the agreement. The Tracker SkyTrax Data can be upgraded to include Stolen Vehicle Recovery at an additional cost to the policyholder (total including Stolen Vehicle Recovery is R133 per month).
- Tracker SkyTrax Recover, at R133 a month:
Where Hollard requires Stolen Vehicle Recovery to be included in the policy due to the value of the insured vehicle, the insured vehicle will need to be fitted with a Tracker SkyTrax Recover. You will be required to sign a 36 month contract with Tracker which contract period needs to be completed regardless whether you cancel the Pay As You Drive policy or not. Should you select this option, we will provide Tracker with your details and they will contact you to discuss the agreement.
For more information on the different Data Collection Devices, see our product table:
Data collection device options
In any particular month, if you do not use the DrivePlan Kilometres, these unused kilometres are carried over to your DriveSave Account for future use. This does not apply to the Grace Period Kilometres.
In the first year of the policy, Pay As You Drive adds 10% Bonus Kilometres per month to the insured car’s DriveSave Account to act as a safety net for those months when the insured car exceeds its DrivePlan Kilometres. In subsequent years, the Bonus Kilometre allocation may vary based on driving behaviour, claims experience and duration of the policy.
In the event that the insured car exceeds the DrivePlan monthly kilometre allowance, and has used the accumulated kilometres available in the DriveSave Account, Pay As You Drive will bill you at a rate per kilometre (DrivePlus rate) for the excess kilometres. The DrivePlus rate is provided at quotation stage and with your policy document.
Each month a statement is mailed to you that details every trip the insured car did during the previous month. This itemised trip summary will enable you to verify your monthly trips. The premium for any DrivePlus Kilometres will be billed together with the DrivePlan premium the month after you receive the statement.
On signing up for your new auto insurance policy, you will be asked how high you want to make your deductibles. Your insurance deductible is the price you will pay out of your own pocket when you need to claim from your insurance company. Take some time to carefully consider what would be a viable amount for this deductible:
- If you choose a higher deductible, your monthly insurance premium will be lower
- If you choose a lower deductible, you will pay a more costly monthly premium
- Now you will need to figure out what a good cost deductible would be. First, you need to consider the cost you will incur if you are involved in an accident. Take the cost of your motor vehicle into consideration, how much it would cost to repair and how expensive parts for your vehicle are, as well as how readily available they are. Furthermore, you need to account for your financial situation. How much savings do you have on hand to assist in a crisis situation like this? Realistically, how much money would you be able to get your hands on to pay the deductible?
- Should you decide to put a high deductible onto your policy, you need to ensure that you have saved some of the money from your lower premium in case of emergencies. This way, you are not putting yourself in too much of a financial risk
When compiling your insurance quotes, ensure that you understand all the clauses regarding your deductible. Make sure that you have read all the details on how much you will be expected to pay and under what circumstances. This is very important, as you do not want to find yourself confused and penniless when it is time for your insurance company to pay out on a claim.
Also included in the policy are the following benefits:
- Accidental death cover of R15 000 is paid in the event that the policyholder dies in an accident in the insured car
- Up to R10 million for third party liability cover that pays damages, legal costs and expenses if you become legally liable following an insured event i.e. an accident in which damage or injury is caused to a third party
- Pay As You Drive's assistance service benefit provides cover for accident management, roadside assistance, and medical assistance in the event of a breakdown or an accident