Pay as You Go Car Insurance

Compare Pay as You Go Car Insurance Quotes

The majority of motorists opt for annual car insurance, but if you end up driving far fewer miles than you estimated when you were taking out that policy then you’d technically be paying for miles you didn’t drive. That’s why some drivers (particularly those that are likely to clock up a relatively low number of miles behind the wheel) would prefer to opt for a ‘pay as you go’ car insurance policy, as it means they’re only paying to be covered when they’re driving their car. 

Is PAYG car insurance cheaper than a normal policy?

Yes, provided your mileage is lower than that of a typical motorist then there’s a good chance you could save some money on your insurance premium by opting for a pay as you go car insurance policy.

Of course, if you do end up clocking up 4,000 or 5,000 or 6,000 miles in a given year then you’ll likely pay quite a bit more for your ‘pay as you go’ car insurance than you would have done if you’d opted for an annual policy, because PAYG insurance really is designed for drivers with lower-than-average mileage (for reference, the average mileage for annual policies is around 6,000 miles).

Is it true that PAYG car insurance costs more per mile?

Yes, pay as you go car insurance does work out more costly on a mile-per-mile basis than an annual car insurance policy would do, but that’s because this type of insurance is designed for drivers who do far fewer miles. As such, pay as you go car insurance will often work out cheaper in absolute terms if your mileage is low, even though it’s more expensive mile-per-mile.

Does every insurer offer this type of ‘pay as you go’ car insurance?

No, some UK car insurance companies will only offer regular annual insurance policies, while a few others do offer ‘pay as you go’ policies. Our price comparison system will aggregate quotes from both types of insurance providers though, which will enable you to compare and contrast the benefits and costs of each.

How much does pay as you go car insurance cost?

As with annual car insurance, insurance providers will take a wide range of risk factors into account when they’re calculating your ‘pay as you go’ insurance premium, and many of those factors are specific to you and your circumstances. 

For instance, your age, your location, your claims history and your driving record will all affect the cost of your insurance, so it’s impossible to give an average cost without comparing real policies from real providers.