Pay-per-use car insurance: the cheapest option for young drivers
Many people are not aware that there is more than one way to obtain driver’s insurance. You don’t have to stick to the more common approach of buying an annual policy that covers you for all your driving over the course of a year. For many people, this is not an affordable or viable way to get insurance and it would be much more expensive to do so. The main alternative is some type of temporary cover and the most interesting option for many is delivery car insurance.
The thing about pay-as-you-go coverage is that you only pay for the driving you actually do. You may be wondering why you would want to do that. Well, many people don’t have regular driving patterns where they take their car to work five days a week and do a bit of running on the weekends. Some people don’t work full time or don’t always need a car to get to work or do their job. One group in particular that often falls into this category is young people.
For young drivers, car insurance can be extremely expensive. Particularly if you are looking for an annual policy to cover what the insurer perceives to be average driving patterns. Many young people live with their parents and may only work part-time or sporadically. The result is that they may need to drive a little one month, but not at all the next. Pay-as-you-go coverage is a way or simply pays for the driving you do each month.
The cost of premiums for any automobile coverage is calculated based on many factors. In addition to the obvious ones like age and size or why you drive, they’ll consider where you live and perhaps how much mileage you’re likely to get during the year. It stands to reason that the more you drive and the more time you spend on the roads, the greater your chances of getting into an accident and filing a claim, at least statistically. Certain roads present a higher risk to insurers than others, and driving at certain times of day compared to others can also be riskier. These are all things that are considered by insurers and by using pay-as-you-go coverage you can lower your cost of premiums if your driving habits are relatively low risk.
The basic principle behind this option is that the insurance company provides you with a satellite device. They arrange for this to be fitted to your car, at no cost to you, and it allows the organization to record exactly how much mileage you do and where and when you do it. You then get a monthly bill based on this actual activity, rather than an estimated average that you may or may not do.
Pay-as-you-go car insurance can be a very cost-effective and sensible solution for young people or other drivers who have irregular needs in terms of the amount of time they drive. It is totally flexible and allows you to pay only in proportion to the amount of driving you need to do.
