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Definitions from the Web

Term: pay-as-you-drive

Description:

Pay-as-you-drive refers to a usage-based insurance or pricing system where the cost of an insurance policy or service is determined by the actual usage or distance traveled by the insured party. This system allows individuals to pay insurance premiums based on their driving behavior, encouraging safe and responsible driving practices.

Sample Sentences:

1. The pay-as-you-drive policy offers a fair and personalized approach to car insurance, as it takes into account the actual distance driven by the policyholder.

2. By opting for a pay-as-you-drive plan, drivers have an incentive to reduce their mileage, leading to lower insurance premiums.

3. Pay-as-you-drive schemes can benefit individuals who only use their vehicles occasionally, as they only pay for the actual time spent on the road.

Related Products:

- Usage-based car insurance

- Telematics device

- Usage-based insurance app