Usage-Based Car Insurance Cost Offered for First Time

Saman Insurance Company, affiliated to Saman Bank, has become the first domestic company to offer ‘pay as you drive’ auto body insurance cost.
According to a press release seen on the company's website, the insurance premium will be subject to distance driven and unlike the traditional auto insurance system wherein car owners pay an annual fee.
Ahmad Zarabieh, the company CEO, said the aim is to inculcate a degree of fairness in insurance services. "It is vital to take policyholders' risks into account while calculating the premium rates. Risk factors should have a maximum impact on the premium."