Top 5 Pay As You Drive Insurance Companies In Australia: Their Pros And Cons

Car Insurance

Jan 06th, 2021

Top 5 Pay As You Drive Insurance Companies In Australia: Their Pros And Cons

Car insurance costs are shooting sky-high that I’m not surprised at all if many of you have your radars on for ways to lower these annual fees. It’s highly likely that you already know about pay-as-you-drive insurance and how it can help you save money. You’ve probably done your research on the pros and cons of various car insurance brands, and now you’re ready to sign up.

While it’s true that you’re trying to save some money, you also don’t want to compromise the protection that car insurances provide, so it’s a balancing act that needs careful thought.

If all of that sounds like you, then you’ve come to the right place. In this article, we’re going to look at the top 5 pay-as-you-drive insurance companies in Australia. We hope that it will make choosing the best one easier for you.

Pay As You Drive Insurance: The Basics

First, let’s make sure that we’re all on the same page about what pay as you drive insurance means. You see, with conventional car insurance, the insurance company will charge you a flat fee for your insurance coverage without taking into account the distance you drive in a year.

For people who don't drive much, that's a lot of wasted money. That's where 'pay as you drive' insurance comes into play. As the name suggests, you only pay to insure your car for whatever distance you drive it.

Generally, if you drive less, you’ll pay less as well!

Five of the Best Pay As You Drive Insurance Providers

Now, let's take a look at five of the best pay as you drive or usage-based insurance providers in Australia. We're going to look at each company and the advantages (pros) they offer customers. Most of their disadvantages (cons) are similar, so we're only going to discuss it towards the article's end.

1. Real Insurance

First on this list is the company called Real Insurance. They're the first insurance company in Australia to offer a pay-as-you-drive option. You can expect to save a significant amount of money on your car insurance if you don't drive much and purchase your insurance from this company.

On top of that, Real Insurance is one of those companies that offer an additional discount if you buy from them online. That’s right! You could cut down your final cost by as much as 10% if you use the online option.

Getting started with them is pretty straightforward. All you have to do is see whether you’re qualified by getting a quote from them. If you are, you’ll just have to give them your start odometer reading and pay according to the mileage you expect to be driving after that.

2. Australian Seniors

One of the critical groups of people who benefit from pay as you drive car insurance is the elderly. Thankfully, Australian Seniors is an insurance company that specialises in catering to this group of drivers. 

It has been in the business for quite a long time, so they’ve built themselves a positive reputation. Where they stand out the most, however, is in their ability to deal with senior drivers. If you’re a senior driver, or if you plan on buying a pay-as-you-drive insurance policy for your parents or grandparents, then this is the company you’ll want.

At the very least, you’ll have peace of mind knowing that your parents are in good hands with this company.

3. Kogan Insurance 

Kogan Insurance is a company that has a vast range of insurance products from home insurance to pet insurance. Of course, they offer auto insurance with a pay-as-you-drive option as well.

Like some other insurers, they offer an additional discount if you buy your policy online. Aside from that, they stand out from their competition with Kogan First Benefits, which gives you all sorts of lifestyle discounts.

Plus, they offer a 14-day Money Back Guarantee just in case you’re not happy with your insurance coverage.

4. UbiCar 

Next on our list is UbiCar. They call their insurance product the ‘pay per kilometre’ policy, which is just another name for pay as you drive or usage-based insurance. 

One of the top benefits of going with UbiCar is that they rely on a device that measures your mileage. It’s called the UbiCar device, which plugs into your car and syncs with your smartphone.

You see, many pay-as-you-drive insurance companies require you to keep track of your mileage. Others, like UbiCar, rely on telematics devices instead. That way, things are much easier for you and the insurance company as well. 

5. Woolworths

Yes, you read that right. Not only does Woolworths sell insurance products, but they also sell pay-as-you-drive insurance coverage!

For starters, they offer a steeper maximum discount if you buy your policy online. Unlike many others that provide only 10%, you can get a maximum of 15% discount on your insurance costs!

According to many of their customers, their online portal makes managing the entire process all much more straightforward. 

Common Cons of Pay As You Drive Insurance

So you’ve read the pros of each pay-as-you-drive car insurer listed above; it’s time to hear out what’s not so good about them. You may want to know that many of them share the same weaknesses.

For instance, most insurance companies on this list do not use technology to track your mileage. Instead, you’ll have to calculate and report your mileage yourself to the insurance company. The only exception would be UbiCar which uses telematics and smartphone technology, thereby automating the entire process.

Aside from that, you must remember that all of those financial savings comes at a cost. Crucial services like roadside assistance, which come as a standard for conventional insurance, is usually considered an ‘optional extra’ on pay-as-you-drive policies.

So, as a final piece of advice, do not go for the cheapest options you can find. Pay-as-you-drive insurance policies are a smart way to save money on auto insurance, but be sure to add any optional extras that you know you’ll appreciate in times of need, like roadside assistance.

Learn More from Carpart.com.au

To learn more about cars and the automotive industry in Australia, check out Carpart.com.au. You’ll find thousands of new and used parts in its marketplace and ads section. It also opens up to you a world of potential sources of auto parts via its Car Part Finder. Click here to request an auto part! Or like what you’ve just done, enjoy its blog and see what’s going on in the Aussie world of cars!


By Ray Hasbollah