1. PAYD: what exactly is it?
Pay-As-You-Drive (PAYD) is a car insurance model where the premium varies based on the number of kilometers actually driven. Unlike traditional insurance which charges a fixed annual premium regardless of usage, PAYD adjusts the cost to your real driving reality.
The principle: a telematics device installed on the vehicle's OBD-II port (or a smartphone app with GPS) records kilometers driven. Each month, the insurer calculates the corresponding variable premium plus a fixed base premium (covering minimum civil liability and administrative fees).
In Morocco, this model remains emerging in 2026. It is inspired by European experiments (Direct Assurance France, Allianz Pay-How-You-Drive Germany) but must be subscribed with local insurers approved by ACAPS — foreign offers are not valid on Moroccan territory.
Important
PAYD is not PHYD. Pay-How-You-Drive (PHYD) adjusts the premium based on driving style (braking, speed, acceleration). Pure PAYD only charges per km. In Morocco 2026, pilots mix both approaches.
2. How to subscribe to PAYD in Morocco?
Subscription follows a 5-step process, similar to traditional car insurance with one additional step for installing the tracking device.
Total time between request and activation is about 7 to 10 business days. The device is delivered to your home or installed at an automotive partner. The smartphone app, a lighter alternative, is available immediately after validation.
3. PAYD providers in Morocco in 2026
Two Moroccan insurance companies are positioning themselves in this emerging market. No generalized commercial offer for the general public yet, but pilots are active.
| Insurer | Status 2026 | Target | Estimated savings |
|---|---|---|---|
| RMA Watania | Active pilot (Casablanca, Rabat) | City dwellers < 10,000 km/year | 30 to 40% |
| AtlantaSanad | Announced Q4 2026 | MRE and retirees | 35 to 50% |
| Wafa Assurance | Market study (no date) | — | — |
| Saham Assurance | No announcement | — | — |
RMA Watania started its PAYD pilot in early 2026 in Casablanca and Rabat with around a hundred selected drivers. The general public commercial offer is expected mid-2026 if feedback is positive. AtlantaSanad is targeting MRE profiles residing 6 months per year, a segment particularly interested in the per-km model.
Beware of foreign offers
Direct Assurance (France) and Allianz PHYD (Germany) are not valid for registering a car in Morocco. Only contracts issued by an ACAPS-approved insurer are recognized by Moroccan authorities.
4. PAYD premium calculation: concrete example
PAYD calculation combines a fixed annual premium (civil liability + administrative fees) and a monthly variable premium calculated on kilometers driven.
| Component | Annual amount | Detail |
|---|---|---|
| Fixed premium | 2,400 MAD | 200 MAD/month (CL + admin) |
| Variable premium | 1,600 MAD | 0.20 MAD/km × 8,000 km |
| Total PAYD | 4,000 MAD | Savings: 1,800 MAD/year (-31%) |
| Traditional reference | 5,800 MAD | Equivalent comprehensive premium |
Let's take the example of a Casablanca executive driving a Dacia Logan, 35 years old, no claims, who usually drives 8,000 km per year. With traditional comprehensive insurance, his annual premium is approximately 5,800 MAD. With PAYD from RMA Watania (pilot rate), he would pay:
Break-even threshold
Above approximately 17,000 km/year, PAYD becomes more expensive than traditional insurance. Calculate your actual mileage over the last 3 years before subscribing.
5. Winning profiles vs losing profiles
PAYD is not suitable for all drivers. Here's how to identify if your profile really benefits from the per-km model.
Winning profiles (-30 to -50%)
- MRE residing 6 months/year in Morocco — car immobilized half the year
- Urban retirees — local use, 4,000 to 7,000 km/year
- Remote workers — eliminated home-office commute, < 10,000 km/year
- Multi-modal city dwellers — combine car, taxi, tramway
- Students with shared family car
Losing profiles (to avoid)
- Sales reps and field workers — > 25,000 km/year, variable premium skyrockets
- VTC / Heetch / Careem drivers — intensive daily use
- Glovo / Jumia couriers — high mileage and aggressive braking
- Weekly Casablanca-Rabat drivers — > 15,000 km/year
- Families with 1 single car for regular long trips
6. Technology: OBD-II device vs smartphone app
Two devices allow measuring your driving. Each has its advantages and limits.
| Criterion | OBD-II device | Smartphone app |
|---|---|---|
| Km accuracy | Very high (vehicle counter) | Good (GPS) |
| Installation | OBD port connection (5 min) | Immediate download |
| Battery consumption | None (vehicle powered) | High (permanent GPS) |
| Hardware cost | 30-50 MAD/month (rented) | Free |
| Data reliability | Excellent | Average (GPS signal lost underground) |
| Multiple drivers | Indistinct (follows vehicle) | Identifies who drives |
RMA Watania uses the OBD-II device in its 2026 pilot to guarantee data accuracy. AtlantaSanad plans a hybrid option: device for main drivers and app for occasional drivers. The choice depends on your technological comfort and the number of vehicle users.
7. Personal data: what protection?
PAYD collects sensitive data: trips, schedules, speed, braking. In Morocco, the CNDP (National Commission for Personal Data Protection) regulates these processes.
- Request the privacy policy before signing
- Verify the right to delete data at the end of the contract
- Refuse sharing with marketing third parties
- Keep proof of your informed consent
- Report any abuse to the CNDP (cndp.ma)
PAYD insurers must obtain prior authorization from the CNDP before collecting telematics data. Informed consent from the subscriber is mandatory, with explicit mention of data collected, their retention period (typically 3 years after contract end) and recipients.
Data cannot be transmitted to commercial third parties without separate agreement. In case of claim, the insurer can use the data to reconstruct circumstances (speed at impact, braking). This transparency can play for or against you depending on circumstances.
Lesser-known risk
In case of dispute with your insurer, telematics data can be used against you (speeding, sudden braking). Assess whether you are comfortable with this level of surveillance before subscribing.
8. PAYD vs traditional car insurance: comparison
The choice depends on your driving profile. Here are the most important decision criteria.
| Criterion | PAYD | Traditional insurance |
|---|---|---|
| Annual premium | Variable per km | Fixed |
| Low-mileage advantage | Very strong (-30 to -50%) | None |
| Heavy-driver drawback | Significant surcharge | None (fixed rate) |
| Privacy | Data collected | No surveillance |
| Flexibility | Strong (pay what you drive) | Weak (annual package) |
| Hardware installation | Device or app required | None |
| Morocco 2026 availability | Limited (RMA pilot) | Universal |
| Ideal for MRE | Yes | Surcharge for immobilization |
If you drive less than 10,000 km per year and accept telematics data sharing, PAYD will save you substantially. If you drive more than 17,000 km annually or refuse any monitoring of your driving, traditional insurance remains more profitable and simpler.
9. FAQ
Q.Does PAYD already exist commercially in Morocco in 2026?
Q.How much does the PAYD telematics device cost?
Q.Is PAYD worthwhile for an MRE?
Q.What happens if I disconnect the device?
Q.Can my driving data be used against me?
Q.Does PAYD replace mandatory civil liability?
Q.How to terminate a PAYD contract?
Q.Can you subscribe to PAYD for a long-term rental (LLD) car?
Q.Does PAYD cover trips abroad?
Q.What is the difference with traditional bonus-malus?
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