What are the pros and cons of pay-as-you-go insurance?
As with all insurance policies, there are pros and cons to pay as you go car insurance:
Pros
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You only pay for the miles your drive
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You have a car available for use in emergencies
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It can be cheaper for younger drivers if they keep their mileage low
Cons
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High-mileage drivers might pay more
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It could cost more if your circumstances change, like if you get a new job with a longer commute
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It's harder to manage your finances with varying monthly costs depending on how much you drive
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How to claim a reward
*Based on data provided by Consumer Intelligence Ltd, www.consumerintelligence.com (February '23). 51% of car insurance customers could save £407.05
**Single annual policy. Shell Go+ account required. Only one £10 fuel reward can be used per transaction and each can only be used on fuel purchases of £10 or over. HelloFresh 18+ subscription service. Geographical exclusions apply. T&Cs apply
What levels of pay-as-you-go 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:
Types of car insurance
Car insurance
is a legal requirement if you're driving in the UK. Find out more about choosing the right cover at the right price.
Black box car insurance
lets you prove you’re a safe driver, and save money on your policy, even if you’re inexperienced or seen as high risk.
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.
Car insurance expert
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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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