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Lucy F, Bradford UK
Car Insurance


Pay As You Go Car Insurance

Pay as you go car insurance provides the legal protection required under UK law but avoids long-term contract commitment. Car insurance can be expensive, and when you don’t drive regularly, you may be overpaying if you purchase an annual policy. If you drive only occasionally, the month-to-month cover this policy type may be just the cover you need.

With pay as you go auto insurance, you pay only when you will be driving. If you borrow a friend’s car or are test driving a new vehicle, you don’t need an annual policy. After you purchase a car, you can upgrade your cover, but don’t overpay when you don’t need that extended protection. When you don’t need the cover any more, you simply suspend the insurance, then reactivate it during those months when you drive again. The monthly pay as you go insurance is extremely handy for those who drive more per month than a temporary cover would allow in the budget but who may not drive every month.

Pay As You Go Benefits

Driving legally in the UK requires proper cover for both the car being driven and the driver. Failure to have cover can result in large fines and penalty points on your licence. Whether you drive a car for a full day or for less than an hour, third-party cover provides the minimum you need. If you are at fault in an accident, third-party auto insurance pays if you are liable for repair costs, medical costs or under a civil judgement. Only others are covered, however: The car you were driving and you are not covered under third-party insurance.

Pay as you go insurance is available for both male and female drivers. Cover comes in different plans – third-party, third-party fire and theft, and comprehensive cover. Whether you own the vehicle or it’s borrowed, if the car is covered, and you are a listed driver, comprehensive cover provides the financial reimbursement for others and for your car. It pays for accidental damage, fire damage or theft damage. Third-party fire and theft and comprehensive cover reimburse for personal possessions in the car that were damaged or stolen.

When you borrow a car, don’t risk your relationship: Your comprehensive, pay as you go insurance is activated in moments. Comprehensive insurance provides repair funds, regardless of who is at fault, so if your borrowed car gets chips in the windscreen or scraped with a key, your insurance should help pay for repair after your voluntary excess.

Comprehensive insurance also provides additional benefits for drivers. Breakdown cover and towing service can be added to comprehensive, pay as you go insurance. A popular feature that may be included or added is hired car cover. If your car needs repair or is stolen, the insurance company will reimburse for hiring a car for a reasonable time, so you can continue your trip, your errands or your holiday.

Monthly Car Insurance Costs

All auto insurers base your premiums on statistics that relate to various insurance groups. There’s a group for each gender, age brackets, car types, postal codes and even mileage driven as well as your driving history and other factors. Approval for pay as you go insurance may come faster than with standard policies because you are charged a flat rate instead of an adjusted rate for all qualifying risk factors. If you qualify, approval is granted in just a few minutes, and you can print your certificate and start driving.

If weeks or months pass between driving episodes, pay as you go insurance is perfect for you. If you are a regular customer, the insurance company may also qualify you for a no claims bonus that might reduce your flat fee for cover. A no claim bonus is usually awarded for driving a policy term without filing an insurance claim. The bonus is usually awarded as lower premium rates during your next policy term. This bonus is accrued, which means that the longer you drive without a claim, the lower your rates will become with that insurance company.

As with all insurance, pay as you go car insurance rates differ widely between auto insurance companies. You don’t have to take the first quote you receive, simply to enable you to drive. Use our free tools to obtain several quotes from multiple providers. Choose the plan and the rate that you can best afford. Spend your money on your holiday, not on your car insurance. If the first set of quotes aren’t quite within your budget, keep searching. There’s a company out there who wants your business badly enough to give you a cheap rate on pay as you go insurance.

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