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Pay As You Drive (PAYD) is a type of automotive insurance that charges customers based on the amount of time they spend driving. This type of insurance is designed to reward drivers who drive less, as they will pay lower premiums. PAYD policies typically use telematics technology to track the distance and time spent driving, as well as the driver's speed and braking habits. This data is then used to calculate the customer's premium.
PAYD insurance is becoming increasingly popular as it allows customers to save money on their premiums while also encouraging safer driving habits. It is also beneficial for insurance companies, as it allows them to better assess the risk of each customer and adjust their premiums accordingly.
Some companies offering PAYD insurance include Allstate, Progressive, Esurance, and Metromile. Show Less Read more