Every car owner in Pakistan must have current third-party motor insurance coverage. It defends them against third-party liabilities that can arise if an accident results in property damage or bodily injury to an identifiable third party. A solo third-party policy, however, does not protect the policyholder from losses sustained by their car.

Comprehensive auto insurance coverage is therefore strongly advised. This sort of coverage preserves the policyholder from obligatory third-party liabilities. It protects their car from theft and damage brought on by any natural or artificial disaster. However, because these plans are more expensive than stand-alone third-party insurance, many car owners prefer to avoid obtaining them.

The type and model of the car, the IDV, the deductibles picked, and the add-on coverage all determine how much comprehensive auto insurance costs. In addition to this, the policyholder’s driving behaviors can have an impact on the cost of their Auto Insurance Pakistan.

To acquire exact information about the driving patterns of their clients, insurers may deploy telematics devices. This information helps them compute the premiums for usage-based auto insurance coverage. Driving irresponsibly or in high-risk locations results in higher premiums. In contrast, safe drivers may see decreased vehicle insurance premiums.


Only use your car when required

Because usage-based insurance policies are sensitive to how the car is utilized, their premium levels are highly determined by the distance you travel. It also considers how frequently you drive your automobile in a particular year. All this data can be captured for the insurance by the telematics equipment in the car.

As a result, you should only drive your automobile if it is essential to significantly minimize the cost of your auto insurance. You can either utilize public transportation on other days or call a cab for yourself.

When driving, adhere to all traffic regulations.

While controlling your car, you must adhere to all traffic regulations. When a policy is renewed, insurers may request a higher premium from customers with repeated traffic infractions.

With the use of telematic devices, the insurer is quickly informed when you run a red light, cross the center line, or travel faster than the posted limit. Therefore, it’s vital to comply with all traffic laws when driving. You won’t have to pay expensive traffic fines, and it can even cut the cost of your motor insurance.

Steer clear of highways

The cost for your usage-based auto insurance coverage is substantially determined by the places you drive and the daily mileage you log. Since insurers consider highways as accident-prone terrain, a customer’s risk increases if they often travel on them. As a result, they might charge these clients more premiums when offering motor insurance coverage.

On the other hand, driving strictly within the city limits carries fewer risks. Unanticipated events are also significantly less likely. Therefore, it’s better to avoid going on highways. Consider hiring a car if you need to travel outside of your city. You’ll be able to travel comfortably and decrease the cost of your auto insurance.

Drive defensively and responsibly.

Even if you follow all traffic laws, the insurer may perceive you as a hazardous driver. For instance, if you brake suddenly when you need to halt or slow down, your insurance will identify this trend with the aid of the telematics device and begin to perceive you as a risky driver. Your motor insurance premium increases as a result.

As a result, learning to drive safely and responsibly is crucial. Drive as softly as you can to prevent slamming on the brakes each time you need to stop or slow down. Additionally, avoid turning or cornering fast. The insurers see such driving practices as dangerous.

Avoid driving after dark

Your auto insurance premiums are also determined by the time of day you drive. Since insurers perceive the night as a riskier time to operate a vehicle, your car insurance premiums may climb if you frequently move after dusk.

While avoiding nighttime driving is impossible, you may reduce the time you drive after the sun sets. When you leave your home, plan your schedule to return before it becomes too late at night.

To sum up

The Insurance Regulatory and Development Authority of Pakistan (IRDAI) has given the go-ahead for several insurance companies in Pakistan to begin providing usage-based motor insurance coverage. This enables them to serve consumers who drive safely and responsibly with affordable auto insurance premiums.

Telematics use by insurance companies may rise dramatically in the future. Therefore, start adopting safe driving habits and decrease your time in your car unless it’s essential if you don’t want to pay costly premiums for your Auto Insurance Pakistan.