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Pay as you drive car insurance

Compare 5 different pay as you drive providers and see how regular insurers also reward drivers with less kilometres.

If you don't use your car very often, or only drive short distances, you might be able to save money on your premium by finding an insurance policy that rewards low usage. Sometimes, these are called pay-as-you-drive policies, but they're not your only option. You can also find car insurers that offer lower premiums to people who drive less, as standard.

Which insurers offer specific pay as you drive car insurance?

We have compared 5 providers below, however there may be more available in the market. Be sure to compare quotes from multiple providers to help you find the best deal for your needs.

1 - 6 of 6
Name Product Roadside assistance Accidental damage Storm Choice of repairer Agreed or Market Value
Budget Direct Gold Low Kilometres Comprehensive
Optional
Optional
Agreed or Market
Finder’s summary: Budget’s Gold Low Kilometre option offers comprehensive insurance with decent cover limits. Also, save 15% on your first year's premium when you purchase a new policy online.
Who it might be good for: Those looking to drive 10,000 km or less annually with a well-regarded insurer – Budget Direct won best value car insurance at the most recent Finder Awards.
ahm Comprehensive with Fixed Kilometre Plan
Optional
Agreed or Market
Finder’s summary: ahm's Fixed Kilometre Plan is available as an add-on with comprehensive cover. This “pay as you drive” insurance can save you up to 30% versus its regular comprehensive cover.
Who it might be good for: Drivers who are cutting down their ks, but who still want flexibility. With ahm you can pay per 1,000 kilometres and top up as needed. There’s also no excess to pay if you hit a Kanga, making it a good option for rural drivers.
Huddle Black Comprehensive
Agreed or Market
Finder’s summary: Huddle offers a short-term insurance option that comes packed with features. Get up to $2,000 in cover for stolen keys, roadside assistance and rental car excess cover (only in Australia).
Who it might be good for: Drivers looking for the most peace of mind against the unexpected – and who don’t mind paying a bit more for the extra security.
KOBA Pay per KM
Agreed
Finder’s summary: KOBA uses a pay-per-km system – ideal if you drive less. Its app is easy to use and costs can be as cheap as 3¢ per kilometre.
Who it might be good for: Those who want to drive shorter distances over a number of months. This makes KOBA’s up-front fee better value for money.
Real Pay As You Drive
Optional
Agreed
Finder’s summary: Avoid paying for kilometres you won’t drive with Real while making the most of a decent comprehensive policy. You’ll need to pay to add extras such as hire car cover and roadside assistance.
Who it might be good for: Those who drive under 15,000 kilometres and appreciate no policy cancellation fee.
Australian Seniors Pay As You Drive
Optional
Agreed or Market
Finder’s summary: Competitively-priced cover that has most of the features you’d expect with a comprehensive plan. Policy discounts of up to 20% are available to some who buy online. This includes a 5% saving for Seniors Card holders.
Who it might be good for: Older drivers looking to make decent savings by restricting their mileage. We found Australian Seniors offered the second cheapest rate out of 6 short-term insurance providers.
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Which insurers reward low mileage?

We requested multiple quotes from over 30 different car insurance brands in Australia. We used the same driver profile, but changed the estimated mileage. Not all of the insurance brands offered a reduced price for lower estimated mileage. Here are some that did:

Brand5,000km 7,000km 15,000km 30,000km Potential saving between 30km and 5kmGet a quote
Budget Direct

$797.42

$838.46$984.84$1,118.63

$321.21

Get quote
Bendigo bank$938.09 $938.09 $1,104.55 $1,104.55 $166.46More info
Qantas

$1,000.04

$1,033.07

$1,112.00

$1,263.08

$263.04

Get quote
Everyday Insurance$900.13$1,023.39$1,416.42$1,533.76$633.63More info
Rollin' car insurance$845.52$856.80 $867.60$958.68$113.16Get quote
Stella car insurance logo

$874.26

$874.26 $946.92$1,060.10

$185.84

More info
Real insurance logo

$749.97

$852.66$1,180.13$1,383.75

$633.78

More info
Australian seniors

$671.03

$762.90$1,055.90$1,238.09

$567.06

More info
Apia

$674.31

$704.00 $725.40$940.96

$266.65

More info
Suncorp

$736.34

$771.27 $836.67$1,073.58

$337.24

More info

*Quotes accurate as of 26 July 2022. Based on a driver profile of a 40-year-old woman, living in Sydney. Car details were for a 2020 Ford Fiesta, with an excess set as close to $800 as the insurer would allow.

Finder survey: How do Australians pay for their car insurance?

Response
Annually56.26%
Monthly36.78%
Doesn't apply6.96%
Source: Finder survey by Pure Profile of 1006 Australians, December 2023

What is pay as you drive car insurance?

Pay as you drive car insurance – sometimes called pay as you go – is comprehensive car insurance with a twist. You get the same level of cover, but you only pay for the kilometres you drive. It's great for people who don't drive very often, or only travel short distances.

However, while some insurance companies advertise specific pay as you drive policies, there are other less obvious ways to access a cheaper premium if you're not driving very much.

That's because some car insurers take estimated mileage into account during the quote process. So although they're not selling a specific pay as you drive insurance policy, you're still claiming a reward for low usage.

If you only use your car from time to time, you might find you're better off using one of these insurers, or purchasing a pay as you drive policy.

How does pay as you drive work?

There are some differences between policies but, generally, this is how pay as you drive car insurance works. This type of system typically applies to any policy which rewards drivers with a lower premium for low mileage.

  • Set the number of kilometres you expect to drive. Your premium is calculated with this figure in mind. The less you drive, the less you pay.
  • Disclose your odometer reading. Alternately, some insurers will install a device in your car which tracks how much you drive.
  • Top up if required. If you expect to go over the amount of predicted kilometres, you can contact your insurer and top up your policy. Some insurers will even credit any unused kilometres to your account, or offer a discount if you're driving less than you expected.
  • Be aware. If you don't top up but drive too many kilometres, or your insurer thinks you deliberately underestimated your usage, you may have to pay an additional excess for any claims, or you could even have your claim refused.

How much does pay as you drive cost compared to normal insurance?

Real Insurance is one of the few car insurers in Australia which offers both comprehensive car insurance and policies aimed specifically at people who don't drive very far.

We used the same driver profile as above and requested quotes for a pay as you drive policy and a comprehensive policy. Both policies have the same level of cover, but our research found a significant price difference.

Estimated annual mileage
5,000km7,000km15,000km30,000km
Pay as you drive$597$738Doesn't qualifyDoesn't qualify
Comprehensive$923$1,031$960$1,043
Potential saving$326$293N/AN/A

Can I update my existing estimated mileage?

Yes! If your driving habits have changed and you're on the road a lot less, you might be able to access cheaper premiums from your car insurer.

Just give your insurer a call, say your situation has changed and ask for a new quote. If you've prepaid for an annual policy, your insurer may provide a partial refund and if you're paying monthly, they may drop your premiums moving forward.

Is pay as you drive better than a normal policy?

If you don't drive very far every year, a pay as you drive policy might be better for you than normal comprehensive car insurance because you get the same cover for a cheaper price.

Just remember, you'll have to keep your insurer updated if your driving habits change, otherwise you risk extra fees or even a denied claim.

Is pay as you drive insurance right for me?

It's worth considering pay as you drive insurance if you don't drive very often or don't drive very far. Typically, this can include:

  • Multiple-car owners. If you split your driving between more than one car, or use another car for the bulk of your driving, a pay as you drive policy may be a good option.
  • Weekend drivers. If you typically cycle to work, or use public transport to commute, your kilometres will likely be much less than the average person.
  • Seniors. Seniors typically drive less than the average population. Why not reap the rewards and enjoy a more affordable premium too?

What are the pros and cons?

As with anything, there are some upsides and downsides to pay as you drive car insurance. You should always consider both before committing to a policy.

Pros

  • Can get comprehensive cover at a lower price
  • Rewards those who don't drive very often or very far
  • Can be topped up or reduced if your driving habits change

Cons

  • May be charged an additional excess, or have your claim denied, if you exceed the kilometre limit
  • Only suitable for people who drive less than average

Compare regular car insurance policies

1 - 20 of 23
Name Product Roadside assistance Accidental damage Storm Choice of repairer Agreed or Market Value
Budget Direct Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: The 2024 winner of our Best Value Car Insurance award. It's cheaper than most, plus you can lower costs by adding age restrictions.

⭐ Current offer: 15% off your first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: Anyone who wants a good value policy.
Youi Comprehensive
Optional
Agreed or Market
Finder's summary: The 2023 winner of our Best Features Car Insurance award. Plus, it's one of the only insurers to automatically include roadside assistance.

Who it might be good for: Those who want good customer service with lots of inclusions.
Australia Post Comprehensive
Optional
Agreed or Market
Finder's summary: Covers a little more than other insurers. You don’t need to pay an excess for windscreen repairs and cover applies to anyone who uses your car.

⭐ Current offer: Get $100 off your first year's comprehensive car insurance premium when you buy online. T&Cs apply.

Who it might be good for: Multiple people using one car.
ROLLiN' Comprehensive
Agreed
Finder's summary: One of the most cost-effective insurers for under 25s, according to Finder research, with no aged-based excess.

Who it might be good for: Young drivers looking to keep costs down and anyone who’d like to get more flexibility from their car insurance.
QBE Comprehensive
Green Company
QBE Comprehensive
Optional
Agreed or Market
Finder's summary: Our best-rated Car Insurer for Customer Satisfaction in 2021/2022 and Green Insurer for the last 3 years.

⭐ Current offer: Save $75 when you purchase a new comprehensive policy online. T&Cs apply.

Who it might be good for: Those who want a trustworthy insurer and more cover than other brands, such as 3-year new car replacement (e.g. they'll give you money for a new car for up to 3 years if yours is written off).
Bingle Comprehensive
Market
Finder's summary: Our data shows it’s the cheapest comprehensive policy. It just covers the basics such as damage to your car, theft and storms – it doesn’t go in for add-ons and extras.

Who it might be good for: Those wanting a low-cost, no-frills policy.
Kogan Comprehensive
Optional
Agreed or Market
Finder's summary: Kogan comes with all the perks that most comprehensive car insurance policies include, but you'll also be entitled to some benefits from its online store. This usually comes in the form of a gift voucher or discount if you buy online.

⭐ Current offer: Get $80 off first year premiums when you purchase Kogan Comprehensive Car Insurance online + $10 monthly kogan.com credit. T&Cs apply.

Who it might be good for: Kogan shoppers and those after a good range of policy options.
Qantas Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: You need car insurance so why not get one that lets you earn Qantas Points? It's good value too (it's underwritten by the same insurer as Budget Direct).

⭐ Current offer: Earn up to 30,000 Qantas Points with every Qantas Car Insurance policy you take out by 28 May. T&Cs apply.

Who it might be good for: People who want more bang for their buck with Qantas Points.
ahm Comprehensive
Optional
Agreed or Market
Finder's summary: Its "pay as you drive" cover can save you up to 30% compared to its standard comprehensive cover. There's also no excess to pay if you hit a Kanga or other animal.

⭐ Current offer: Get 12 months of roadside assistance included when you take out a new comprehensive car insurance policy. T&Cs apply.

Who it might be good for: Rural drivers and those who drive less than 15,000 km a year.
Club Comprehensive 4x4 Insurance
Optional
Agreed or Market
Finder's summary: With Club 4X4, you can take advantage of Australia-wide cover for your 4WDs or 4x4. Importantly, insurance extends to modifications and accessories. Also, get peace of mind with personal effects cover of up to $2,000, plus, up to $1500 towards the cost of recovering your off-road vehicle if you get in trouble.

Who it might be good for: Drivers of 4WDs or 4x4s looking for wide-ranging protection ahead of their next driving adventure.
Coles Comprehensive
Optional
Agreed or Market
Finder’s summary: Mid-range cover and price but very good for perks. Double Flybuys points and $10 off at Coles every time you redeem 2,000 points, plus 1-week turnaround on repairs.

⭐ Current offer: 15% off your first year’s premium when you take out a policy online. T&Cs apply.

Who it might be good for: Those who want a wide-ranging policy with added bonuses that allow savings on everyday bills.
Bupa Ultimate
Agreed or Market
Bendigo Bank Comprehensive
Agreed or Market
Finder's summary: On top of the essentials, cover includes a nationwide repair network, 3-year new car replacement and up to $30m in liability insurance.

Who it might be good for: Those wanting peace of mind with lots of benefits.
Huddle Black Comprehensive
Agreed or Market
Finder's summary: This goes further than most insurers. You get up to 2k for stolen keys, roadside assistance and rental car excess cover (for car rentals in Australia).

Who it might be good for: Those who want top cover for their car.
Virgin Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: Finalists for the 2021 Finder Awards for Best Car Insurance - Value in VIC, QLD, SA, WA and TAS, Virgin Comprehensive provides a good level of cover for a decent price.

⭐ Current offer: Get 15% off on your first year’s premium when you purchase a new eligible comprehensive car insurance online. T&Cs apply.

Who it might be good for: People who'd like to manage their policy online 24/7.
Poncho Comprehensive
Poncho Comprehensive
Agreed
Finder's summary: Poncho works like a monthly subscription – you pay monthly and can cancel and leave at any time. You can also list multiple cars and drivers under one policy, making it ideal for families and groups living together under one household.

Who it might be good for: People who want their car insurance month to month.
PD Comprehensive
Optional
Agreed or Market
Finder's summary: PD comprehensive car insurance policy lets you buy, manage, and start your claims process online. It includes cover for emergency repairs up to $500 and free windscreen chip repair. Ability to customise your extras cover.

Who it might be good for: Those with low claims history and the only driver.
Real Comprehensive
Optional
Agreed or Market
Finder's summary: Real Comprehensive Car Insurance provides similar coverage to other insurers for the important stuff like looking after your car if it's stolen or you crash. It's also one of the few insurers who offer a Pay As You Drive policy, so you might be able to save big if you don't drive much.

Who it might be good for: Those that don't drive much can take advantage of its Pay As You Drive policy.
Huddle Comprehensive
Optional
Agreed or Market
Finder's summary: Huddle's comprehensive policy will cover you if your vehicle is damaged or lost as a result of a collision, a natural event, a malicious act, theft or fire. It also includes up to $500 for essential repairs.

Who it might be good for: Someone who drives less than 15,000 km a year can opt for Pay As You Drive cover.
ING Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: A policy with high benefit limits included as standard with plenty of optional add-ons.

⭐ Current offer: Save 15% on your first year’s premium when you buy a new ING comprehensive car insurance online. T&Cs apply.

Who it might be good for: Drivers who like the ability to tailor their cover with lots of optional extras like windscreen damage and roadside assistance.
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