How the pandemic has changed driver behaviour

The number of motorists choosing to limit their driving below 15,000km a year has steadily increased from 57% in 2022 to more than 75% of all new policies purchased in 2024, with the average being 8,400km.

The data, based on Bupa Car Insurance Pay As You Drive policies, also shows the cars sitting idle the most following changing driver behaviour with the Toyota Corolla, Mazda 3, Hyundai i30, Honda Civic and Nissan X-Trail all making the top 10 list.

Victoria has the highest number of policies choosing to limit their kilometres below 15,000, followed by South Australia, Queensland and New South Wales.

Drivers aged 30-39 were the most common age group to take out Pay As You Drive car insurance, which allows motorists to save money on annual policies by insuring themselves for only the kilometres they drive.

Bupa Car Insurance General Manager Lachlan Davidson said more than 75% of policies taken out nationally in 2024 had drivers limiting how many kilometres people were driving, reflecting current lifestyle trends.

“The pandemic changed many things about the way we live including working from home, driving less, staying closer to home and being more active,” Mr Davidson said.

“With Australians continuing to face cost-of-living challenges, many are finding Pay As You Drive cover affordable, while knowing they are covered should something happen.

“They can often be up to 30 per cent^{^} cheaper than traditional unlimited kilometre policies by simply limiting the number of kilometres you drive.

“We expect Pay As You Drive will continue to grow in popularity given its flexibility and that it is meeting the needs of today’s drivers.

 “We know our customers want to save money on insurance premiums, and this is one way that just like your water or energy bill, you only pay for what you use.”

For more information on Pay As You Drive click here.

States where motorists are limiting their drive

^{*Based off Bupa Car Insurance Pay As Your Drive Policies purchased between Jan-Sep 2024}

Most common cars insured for Pay As You Drive

^{*Based off Bupa Car Insurance Pay As Your Drive Policies purchased between Jan-Sep 2024}

^{Any advice is general only and does not take into account your personal circumstances. Bupa, receive a percentage of the premium as commission. Before purchasing, first read, on this website, the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) as well as the Target Market Determination (TMD) to help you decide if a product is right for you. Bupa Home, Landlords, and Car Insurance is distributed by Bupa HI Pty Ltd ABN 81 000 057 590 (Bupa), an authorised representative (no. 354269) of Open Insurance Pty Ltd ABN 23 166 949 444, AFSL 451712 (Open). It is issued by Open on behalf of the insurer, The Hollard Insurance Company Pty Ltd ABN 78 090 584 473, AFSL 241436 (Hollard). Bupa and Open act as agents of Hollard and not on your behalf.}

^{^Saving of up to 30% derived from premium comparisons between Bupa unlimited kilometre comprehensive car cover option and Bupa Pay As You Drive comprehensive car cover option. Calculations based on a sample of profiles of existing Bupa car insurance customers who advised they drive under 15,000 km annually. Current as at 26 April 2024. Actual savings are determined by your individual circumstances, including the kilometres selected, excess chosen and other risk factors. Minimum premiums may reduce savings. Kilometres can be increased during the policy period, an additional premium is payable. In event of an accident and the end odometer reading is exceeded or is below the start odometer reading on your Certificate of Insurance, an additional excess is applied.}