Pay as you go or pay per mile car insurance offers prices based on the number of miles you drive. Insurers monitor your driving using smart technology and charge you per mile you drive, on top of a set annual basic rate.
Your basic rate is based on things like your driving history, occupation and postcode. This covers your car for theft or damage while it’s parked. After that, it’s pay as you go for each mile you drive which will be billed monthly.
Depending on the policy you choose, some insurers will also monitor how safely you drive. If they think you’re a safe driver then it’ll be reflected in your price.
Policies are usually set up as a rolling contract, meaning you can cancel anytime without a charge. But you’ll need to check your T&Cs as each provider is different.