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Car insurance: Pay As You Drive and Pay How You Drive explained
Insurance goes with you: with the Pay As You Drive and Pay How You Drive premium options, your car insurance company knows when and how you’re driving. Good driving behaviour and infrequent driving are rewarded. Comparis explains.
07.11.2024
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1. What is Pay As You Drive and Pay How You Drive?
With some car insurance companies in Switzerland, you can transfer your driving data. In return, you will receive a premium discount — depending on your driving behaviour and car usage. This principle is also called telematics insurance.
Here’s how they differ:
| Pay As You Drive Insurance (PAYD) | Pay How You Drive Insurance (PHYD) |
|---|---|
| Principle: drive rarely, pay less premiums. | Principle: drive carefully, pay less premiums. |
| The number of kilometres travelled is usually decisive, as is the route and time of day, depending on the system. | Depending on the provider, a driving data recording device or your smartphone determines your driving behaviour. |
| It is worthwhile for occasional drivers, when driving during off-peak hours or when using roads with little traffic. | Its worth it if you drive preventively and defensively. |
How does it differ from telematics devices?
Some car insurance companies offer telematics devices Another saving option: in the event of an accident, the telematics devices makes it possible to reconstruct the accident. This helps to clarify and document the question of liability — and leads to a reduction in premiums.
2. Which telematics providers are there?
In Switzerland, six insurance companies currently offer data-based telematics options. Some insurers set an age limit.
| Retailer | Product name | System | Who benefits? |
|---|---|---|---|
| AXA | Safe Driver Bonus | Crash Recorder | People up to 25 years |
| Simpego | Flex Drive, Bonus Drive | Pay As You Drive, Pay How You Drive | All age groups |
| Die Mobiliar | Clever Drive (not available in English) | Pay How You Drive | People up to 30 years |
| Zurich | MyWay | Pay As You Drive | All age groups |
Are you looking for car insurance?
Are you more interested in ordinary car insurance? Premiums for established insurance models are generally more comparable.
3. What are the advantages and disadvantages of Pay As You Drive?
These are the advantages and disadvantages of insurance models, where the costs depend on the kilometres travelled:
| Pros | Cons |
|---|---|
| Save on premiums: depending on usage (kilometres travelled), you benefit from premium discounts. | Frequent use: if you use your car frequently, you generally have no premium benefits — or even pay more than with classic insurance models. |
| Depending on the offer, you can view your own usage via an app. This allows you to see how often and at what times of day you use your car. | Data protection: the insurance company receives certain data — such as information on kilometres travelled. |
4. What are the advantages and disadvantages of Pay As You Drive?
These are the advantages and disadvantages of insurance models, where the costs depend on the kilometres travelled.
| Pros | Cons |
|---|---|
| Save on premiums: if you drive carefully, you benefit from premium discounts. | Bad driving behaviour: if you drive too fast or carelessly on a regular basis, you will generally no longer have any cost advantage. |
| Depending on the offer, you can view your own usage via an app. For example, you can see how you can improve your driving style. | Data protection: the insurance company receives certain data — such as information on acceleration, speed and braking behaviour. |
This article was first published on 19.09.2019
