Pay as You Go Insurance
As a young driver, you will unfortunately be faced with some of the highest premiums on the market when it comes to buying a car insurance policy.
Thankfully, with black box and pay as you go insurance, you can save money by reducing your mileage and driving carefully.
In this guide:
What is pay as you go insurance?
Pay as you go insurance policies use telematics insurance to record your mileage and charge you a premium based on this data – the lower the mileage, the lower the premium.
This is because the less you drive, the smaller the likelihood of you being involved in any kind of accident on the road.
Telematics technology works by means of a small tracking device (known as a black box) being installed in your car. This device records your mileage, as well as other data about how you are driving such as adherence to speed limits and regularity of braking and cornering.
A profile of you is built up as a driver so that the cost of the insurance policy you are offered isn’t just based on statistics about the age group you belong to which, for younger drivers, unfortunately imply high risk.
With a pay as you go policy in particular, the savings are increased simply by you either reducing you mileage, or getting the bulk of your driving done during ‘off peak’ hours. Which hours count as off peak will depend on the insurer but generally it’s late at night or very early in the morning.
Will pay as you go insurance save me money?
If you can keep your mileage down and drive only, or at least mostly, at off peak times, then a pay as you go insurance policy will definitely save you money.
But if your circumstances should change and you find yourself being forced to drive more, you’ll find your costs going up, potentially to higher than they would be with a conventional Insurance policy.
That being said though, telematics insurance policies in general are one of the best ways for young or newly qualified drivers to keep the cost of their insurance premiums down if they can demonstrate their care and ability behind the wheel.
What other steps can I take to get cheaper Insurance?
Another great way to both demonstrate your capabilities as a responsible driver and to get cheap car insurance is to take a Pass Plus test. It doesn’t cost a lot or take much time but it can be an invaluable tool on the quest to cheap premiums.
Resisting the temptation to get behind the wheel of a high performance car is also crucial if you want cheap cover.
Buying a car that falls in one of the lower of the 50 Insurance groups will dramatically reduce the cost of your policy. Smaller, less powerful cars are those that tend to be cheaper to insure, as they are less likely to be involved in accidents on the road.