Most of us pay our car insurance in the same way. We go to a company or a broker, give them some of our details and get a quote. We then either pay for this quote in one go, or in monthly instalments. This is the way it has been for years. However, new technology allows companies to dream of new ways to price policies. Tracking your mileage could allow you to only pay for your insurance by the miles you actually drive.
Pay as You Go Insurance is the idea of measuring your mileage, and determining your insurance premium based on this. For some people, this is set to make their insurance much cheaper. If you don’t drive many miles, or only drive occasionally, your premium could be much lower under this system.
A new start-up insurance company, ‘By Miles’, is running a test on UK roads. They claim that 4,000 drivers are on a waiting list to try out Pay as You Go Insurance. If By Miles find this trial to be economical, they are likely to roll it out to the wider public. The policy covers no claims protection, personal accident cover, courtesy cars, uninsured driver cover and misfuelling cover. This is as comprehensive as most regular car insurance policies – at a potentially much lower cost.
A Growing Market
Pay as You Go Insurance is a new concept. As such, more work needs to be done on it before it is entirely feasible. Entering into a new market is always a risk. By Miles may be one of the first to offer this kind of insurance, but they are unlikely to be one of the last. Insurers are much more willing to offer new ideas than many people think. It is simply that they need to be sure that these new ideas are profitable. If By Miles are successful, then expect to see Pay as You Go Insurance much more often.
Alternative Insurance Brokers like to take a traditional approach to finding you the best insurance deals. We work closely with a wide panel of insurers to find you the best deal. At Alternative Insurance, we believe that the right deal for you is one that is built specifically for you.