Buy Your Car Insurance by the Mile
If you are concerned about the high cost of insurance then maybe it is time for you to think about a brand new and innovative form of vehicle insurance. Pay as you go or pay per mile insurance is slowly starting to take off.
How these new pay as you go policies work
A large number of pay as you go insurance policies require you to pay your insurance premium upfront as usual, however, when you cover fewer miles than anticipated you get a refund. Some companies provide you with a quotation, which you then pay for in monthly instalments.
At the conclusion of the year, you either get a refund if you cover fewer miles than anticipated or pay a further premium in the event that you have covered more miles than anticipated. Still others let you pay a varying monthly premium that has been calculated on the miles you actually cover there is however, a minimum premium that you must pay each month irrespective of how many miles you actually cover.
The advantages of pay per mile insurance
The main advantage of pay as you go automobile insurance is that you will only be paying for your actual usage. The miles you cover are monitored by a tracker that is fixed to your car.
Should your vehicle be stolen that exact same tracker is used to find your car. In effect, you have been given a free vehicle tracker by your vehicle insurance company.
The different types of policy that are available
The majority of pay as you go insurance policies are fully comprehensive which means that you will get windshield protection, personal possessions and personal accident insurance coverage for a pretty competitive price. It is also possible to buy third party policies.
It is a great policy for younger drivers
Pay as you go insurance can be especially useful for younger drivers. Most of the firms that provide these policies will also cover new or inexperienced drivers. They may put a more sophisticated tracker in your car, but how much you pay is still largely dependent on the number of miles covered. This makes it easier for a young person on a very tight budget because they can moderate the number of miles they cover during months when money is particularly tight.
Restrictions for younger drivers
Most of these firms are willing to insure younger drivers and provide low rates if younger drivers are willing to avoid driving at particular times of the week. The time slots, which are the most costly, are usually those in which young drivers statistically have more accidents for instance, Fri, Sat, Sun and bank holidays 11pm-5am. As long as the young driver does not drive many miles and avoids the expensive periods of the week pay as you go insurance is normally less expensive when compared with standard insurance policies.
Understanding the policy
These policies are a little different from standard policies. If you are considering buying one of these policies do your research and make sure that you understand what you are buying.