Pay as you go Car Insurance or PAYG is a new and innovative way of breaking down payments into easy and manageable chunks over a certain period of time. Very similar to a mobile phone contract this system uses a monthly payment scheme Rather than the usual yearly payments. This type of payments scheme is most helpful for either young drivers who have a large yearly premium, although people who drive only a small amount Can also benefit from this with the ability to turn your insurance of and on when you want to.
Contracts and only last one month and at the end of each month you would be asked if you’d like to renew for the next month. It is then your choice if you decide to continue which in the long term can save you money if you decide not to drive for one month or longer. Also with the payments broken down into easy manageable monthly payments it is not hard to see why pay as you go car insurance is becoming a favourite for younger and those who don’t drive as often.
Advantages to pay as you go car insurance
Normal policies offer the chance to stop at any time, and have the added benefit of ensuring up to four cars are covered and up to four people that this depends on the provider.
Another advantage and option is the ability to have A shorter term to get your no claims bonus typically 8 to 10 months rather than the full year. This can help for younger drivers to build their no claims bonus within a shorter period of time.
Also providers tend to lock in the price of the monthly payments for a term of up to one year to assure that you never pay more than the original price quoted per month. This is obviously dependent on the provider and you must check the contract carefully before paying the first installment.
As you can see pay as you go car insurance is an important and easy option for you to be about to insure your car. If you would like a quote please get in contact with us and we are happy to provide you with one.