Pay As You Go Car Insurance

Pay as you go (PAYG) car insurance provides an option to motorists who do not want to have an annual car insurance policy, but still require cover at different times. The policies are designed for those who would not get true value from an annual policy as they only drive a very low mileage.

There are two basic types of PAYG car insurance

Monthly PAYG Car Insurance

Monthly PAYG car insurance, available from eCar Insurance, provides cover on a monthly basis. When the month rolls over the insured can opt to cancel the policy or pay a further month’s premium.

PAYG Car Insurance based on the miles you drive

Pay as you go car insurance, based on the miles you drive is perhaps a true form of PAYG insurance. The cost of the policy is charged depending on the miles driven; the miles driven may be recorded using the cars odometer reading, a GPS device which tracks the distance the car travels or both.

How much does Pay As You Go car insurance cost?

The cost for PAYG car insurance will vary depending on the circumstances. As with most policies the insurance company will look at the type, age and value of the vehicle in question and also the age and experience of the driver proposing the policy.

Insurance companies may also consider the time of the day the car is driven, day light hours with low traffic volumes will be considered a lesser risk to late at night or times of high road use. If the company you insure with does consider these factors you can expect to pay more if you drive late at night or during ‘rush hour’ traffic.