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Pay-as-you-go car insurance

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What is pay-as-you-go car insurance?

Pay-as-you-go car insurance charges you based on the number of miles you drive. This is why it's also referred to as 'pay per mile' car insurance.

It's still a standard 12-month policy and shouldn't be confused with hourly car insurance or other short-term policies for infrequent drivers.

We currently compare quotes from 4 pay-as-you-go insurance providers, which are labelled as a 'pay per mile policy'. When you get a quote, we’ll show these, plus quotes from up to 163 of our standard panel of providers.

How does it work?

You pay a base rate for your cover, which you can pay either annually or monthly. This base rate is usually cheaper than what you’d pay for standard car insurance.

You're then given a monitoring device that's either fitted to your car or an app you download to your phone. It tracks the number of miles you drive each month, and you're billed at a pre-agreed rate for each one. So it can work out cheaper for occasional drivers.

It’s not the same as a telematics policy, which monitors how you drive as well as your mileage. Pay-as-you-go or pay-per-mile car insurance policies only look at the distance you travel.

pay as you go car insurance quote process guidelines

Is pay-per-mile cheaper than standard car insurance?

It can be. If you only drive occasionally, it could be a good way to keep your costs down.

But if you drive regularly, standard car insurance is likely to be more cost-effective.

There are other ways to get cheaper car insurance too, so it’s worth considering these first before buying.

Is pay-per-mile insurance right for me?

This type of insurance isn't for everyone, but if you have a low mileage, it may be useful for:

  • Infrequent drivers who only drive occasionally
  • Older drivers who don't drive often but aren't ready to stop driving altogether
  • Remote workers who no longer commute, especially if they drive infrequently outside of work
  • Young drivers who generally have a low mileage

What are the pros and cons?



  • You only pay for the miles you drive
  • You have a car available for use in emergencies
  • It can be cheaper for younger drivers if they keep their mileage low


  • High-mileage drivers might pay more
  • It could cost more if your circumstances change, like if you get a new job with a longer commute
  • It's harder to manage your finances with varying monthly costs depending on how much you drive

Compare cheap pay as you go car insurance quotes

What levels of insurance are there?

Some providers only offer comprehensive cover on their pay-as-you-go insurance policies. But others let you choose the level of cover you want depending on what you need:


Third-party provides you with the minimum amount of cover legally required to drive on the road. It covers damage caused to other people’s property or vehicles but doesn't cover damage to your own.

Third-party, fire and theft

Third-party, fire and theft covers against damage to your own car caused by fire or theft. It also covers damage to other people’s properties or vehicles.


Comprehensive car insurance offers the most cover and can sometimes be the cheapest of the 3 types. The average price of a comprehensive car insurance policy in the UK is £995***.

***Confused.com Q4 2023 price index data

How do I get a quote?

You can get a quote for car insurance in as little as 5 minutes.

  • Fill out our quote form. To get a quote, we'll need your name, date of birth and title. We'll also need a few details about your car such as its make, model, mileage, years of no-claims bonus and where your car is usually parked.
  • We compare up to 163 car insurance companies to help find you our best price.
  • We’ll show you a list of quotes to choose from.
  • Once you’ve bought car insurance, don’t forget to come back and choose a freebie with Confused.com Rewards.

Will I need to have a black box installed?

This depends on the insurer. Whoever they are, they'll need to keep track of your mileage. To do this, they'll either:

  • Install a black box in your car
  • Send you a black box by post that you install yourself
  • Send you a link to an app that you download to your phone

Your insurer should tell you exactly how your tracking device works, what data it collects and who it’s shared with. Plus, it should only monitor your mileage.

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How to claim

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**Single annual policy. New and former Paramount+ subscribers only who sign up at ParamountPlus.com. Subscription required. Auto-renews unless cancelled. 18+. Just Eat website account required, geographical exclusions apply. One regular hot drink per month for a year, only available via the Confused.com app. T&Cs apply

What extras can I get with my policy?

Each insurer offers different types of optional extras, or add-ons, but most generally offer:

Why choose Confused.com?

  • Founded in 2002 and based in Cardiff, we were the first car insurance price comparison site. Now we help over 5 million customers with their insurance each year so we know a thing or two about insurance
  • We're 100% independent and not owned by an insurance company. That means you'll see the best prices available based on the information you provide and not for any other reason.
  • Need our help? Our Cardiff-based team is here to support you. Take a look at our contact page to find ways to get in touch.
  • Still not convinced? With Confused.com Rewards you can choose a freebie when you buy car insurance**. With 4 different rewards to choose from, you're free to choose whichever one you want.

What our car insurance expert says

"By only paying for the miles you drive, your insurer gets a more accurate idea of your driving. It can be a great way to save money if you're just starting out or if you're an older driver who doesn't use the car much.

If you're worried about keeping track of your mileage, most pay as you go policies will make it easy for you to keep track of your driving and even top-up with extra miles if you need to."

Louise Thomas, Motor Insurance Expert at Confused.com
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Need more help?

Can I switch from pay-as-you-go to a standard policy if my usage changes?

Yes. Most pay per mile policies are rolling subscriptions, so you can usually cancel them fairly easily if your circumstances change. Just be aware that you may have to give notice to do so.

Once you’ve cancelled, you’ll then be able to take out a traditional car insurance policy - which might end up cheaper if you’re driving a lot of miles.

Can I get pay-as-you-go food delivery insurance?

This depends on the provider, so it’s worth checking with your insurer to see how they can help.

You’ll need more than just car insurance to work as a food delivery driver too. You’ll usually need business car insurance, alongside some courier-specific policy extras like courier insurance and goods in transit insurance. You might even need public liability insurance. Check with your employer to see exactly what you need in place.

Will I have a curfew?

It’s unlikely that you have a curfew on a pay-as-you-go car insurance policy. Curfews are typically only imposed on black box policies, which monitor how, when and how far you drive.

Pay as you go policies only track the number of miles you travel. So in most cases, the time of day you drive is irrelevant.

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Page last reviewed: 08 February 2024

Reviewed by: Louise Thomas