Pay As You Drive car insurance
Here's a car insurance product that might be an awful lot cheaper for people who don't use their cars much or off-peak drivers.
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Coverbox
Coverbox offers PAYD policies from insurers including Aviva, AXA and Zurich.
You have to provide the insurer with details such as your age, where your car is kept, how many miles you normally drive and at what time most of your driving takes place. You'll be given a monthly premium price which is then reviewed by looking at data from a white telematics box fitted in your car, and your premium price changes depending on how strictly you’ve stuck to the original details.
You can view your mileage online via your own personalised dashboard. If you're planning a longer road trip, you can temporarily upgrade your policy for an additional charge.
Insure the Box
Insure the Box policies allow drivers to buy a bulk of insurance miles, starting with 6,000, and a small clear box is installed for free behind the dashboard.
Policy holders can earn up to 100 bonus miles per month if they are driving according to the safety rules. If you go over the 6,000 miles, your bonus miles kick in and if you’ve used them all up you need to buy top-up blocks.
Pros of Pay As You Drive car insurance
- If you don't drive a lot, your premiums could be far less than a standard car insurance policy.
- It might make you think about the car journeys you make and whether you really need to make them.
Cons of Pay As You Drive car insurance
- If your circumstances change, for example you need to travel further to a new job, you may end up paying more than you would for a standard policy.
- If you drive mostly at night, even only infrequently, a PAYD policy may be more expensive than a standard one.
- Your driving's being tracked – you may see that as a pro, but a lot of people see it as a con.
Shop around
Make sure you shop around before you opt for a PAYD policy, just in case it would be cheaper to go for a standard deal instead.
Compare car insurance policies
Additional research by Rebecca Rutt
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Comments
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teentrack, I think you're confusing this type of insurance with Pay How You Drive insurance, which is specifically designed for younger drivers and is mentioned (with a link to my article on it - http://www.lovemoney.com/news/insurance/car-insurance/17162/young-drivers-pay-how-you-drive-car-insurance) in the article. There are similarities in the technology used but they are different types of insurance. Pay As You Drive is designed for low mileage users, which I suspect is the reason for the high quote killick_becki received. Best wishes Simon
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black box insurance is not designed for those who have several years NCD as you will find better insurance quotes with "normal" insurance policy. It's really only designed for the first years of driving when you are more likely to have an accident. The cost of the "free" box also needs to be included in the premium which probably explains why is was so high. I think by the sounds of it you may be better off with just a regular insurance policy
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Just got a quote from InsureTheBox for my car. I pay c£250 a year for my insurance for 7,000 miles. They wanted £6600 to purchase 6,000 miles insurance! Never had an accident or points on my license and have several years no claims. My guess is that it is high because my no claims years don't match the "how long have you owned the car" years due to being a second named driver in the first few years of ownership.
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16 November 2012