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. So it's worth weighing threse up before you get a quote.
The pros of pay as you go car insurance are:
You only pay for the miles you drive so if you drive infrequently, you could save
It might be cheaper for riskier drivers so younger drivers or those with convictions could save with pay as you go policies, as long as they keep their mileage low
You have a car on hand for emergencies so if you don't drive much, but want car that’s insured and ready to go in an emergency, pay as you go insurance might be for you
The cons of pay as you go car insurance include:
High mileage drivers might pay more and could end up paying more than on a standard car insurance policy.
You're still tied in for a year so life changes that require you to drive further than you used to could see you paying over the odds for your car insurance.
Your costs are less predictable as you’re paying based on the number of miles you drive, your insurance costs are likely to change month to month.
What level of cover can I get on pay as you go insurance?
What our car insurance expert says
If you don't drive lots of miles or are a young driver looking to build up some experience, pay as you go can be a good option. 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
Need more help?
No. They're different things.
Temporary car insurance provides you with short-term cover but charges you a flat rate, in the same way traditional car insurance policies do.
The way it differs from standard policies is the length of time it runs for.
Pay-as-you-go insurance policies are annual and charge you based on how far you you drive rather than purely on a flat rate.
The way it differs from standard policies is how the policy costs are calculated, not the length of time the cover is in force.
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, where everything from how you drive, to when you drive and how far you go are monitored.
Pay as you go policies only track the number of miles you travel – meaning, in most cases, that the time of day you drive is irrelevant.