Beema’s latest launch of pay-per-kilometer car insurance is the new kid on the block when it comes to insurance. Our team at has been taking a closer look at the newcomer to give you the good and the bad.

A bit of background – Beema will offer mileage-linked discounts in the form of cashback on its comprehensive car insurance policies underwritten by AXA. With a maximum cashback rebate of 25 percent on offer, the newcomer claims to unlock some serious savings for car owners in the UAE. Simply put – The less you drive, the more you save.

Who wouldn’t want a fourth of their annual car insurance premium paid back to them? Is this the revolutionary product we have been waiting for? Let’s find out…

Has it been done before?

While Beema is the first to bring the concept of mileage-based car insurance to the UAE, the concept has been tried and tested in various developed markets like the United States and the United Kingdom.

In fact, this concept is almost a decade old. US based insurer MetroMile was one of the pioneers of pay-per-mile car insurance. Over the years, dozens of insurance companies have jumped on the bandwagon including Allstate, Progressive, Nationwide, Esurance and Mile Auto in the US, and By Miles in the UK.

[Related: Buying your first car insurance? Don’t skip this…]

How does mileage-linked car insurance work in other markets?

To truly assess how risky a driver is, mileage isn’t the only metric used by international players in other markets. Some of the top insurance companies in the US that offer the pay-as-you-go style of car insurance, use vehicle diagnostics and telematics to monitor ‘how’ you drive, on top of tracking mileage. This helps insurers unlock the data on how you accelerate, how often you hard-brake or turn a hard corner and so on. Of course, this has been made viable due to new technological developments, particularly in the US and the UK.

As of now Beema uses odometer readings to track how many kilometers you drive during the policy tenure. They take a reading of your odometer at the start and end of the policy. Customers have the option of either uploading a Tasjeel certificate verifying the reading, or have a Beema representative come and record it physically.

What happens after a year? The low down on Beema’s cashback payout…

Beema advertises a cashback of up to 25 percent with its pay-per-kilometer car insurance. Only those who drive a maximum of 4,000 kilometers annually will be eligible for the cashback of 25 percent. And as you drive more than 4,000 kilometers, the cashback amount decreases. If you drive more than 20,000 kilometers, the cashback offer does not apply anymore.

Beema will calculate the discount due to you at the end of the policy term, which will then be credited to your bank account. Any claims submitted during the policy tenure will not affect your cashback. However, your cashback will be forfeited if your car is declared a total loss mid-tenure.

[Related: Car Insurance: Pay Attention to the Small Print]

Ultimately, as we are all different and use our car differently, which ever option you decide to go for, make sure that you understand the rules, the terms, and the conditions that come with the policy. You can compare your options from 24 different insurance providers and make sure you are getting the policy that suits you best.