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Pay as You Go Cover vs. Standard Car Cover Policy

Car insurance is always a preoccupation with car drivers today, particularly as the cost of premiums has risen greatly in recent years. Particularly for younger drivers, inexperienced drivers or drivers with previous claims, insurance can become very pricey and it can be difficult to get an affordable policy, particularly if you fall into a `high risk` category.

However, luckily there are a new range of products that offer more flexible types of car insurance. One of these is called `pay as you go` car insurance cover and it is slightly different from the standard insurance packages. We look at the differences between the two types of insurance and the reasons that you might choose one over another.

Pay as you go car insurance allows you to pay an agreed rate for the miles that you drive. Rates are usually tiered to adjust for different times of day and are closely linked to risk profiles. For example, you might pay more car insurance to drive late at night, than in the middle of the morning. Your miles are tracked through a tracker box that is installed into your car. It collects information about the number of miles you`re driving on a rolling basis, along with the time of day and the place that you keep the car at night - another important factor in costing up car insurance. One additional benefit for this tracker box is that if your car is stolen, it can be used to trace the vehicle and the insurance company will liaise with the police for its return. This personal dashboard will give your insurance company the information they need to provide you with your insurance cost - either for the month or for the year, depending on how you prefer to pay. If your usage changes, so does your cost - it is a pay as you go system, so if you drive less, you`ll pay less - and vice versa. The direct debit will generally stay the same each month and your account balance will fluctuate throughout the year, very much like a regular utility bill.

Standard insurance on the other hand requires you to define your usage in terms of mileage and where you park the car, when you apply. It will also ask questions such as how secure your car is and whether you drive for commuting use as well as social. The price for this insurance is agreed before the policy starts and then will run for the year. You can either pay for the month, or the year. For some groups of drivers, it can be an expensive way of buying insurance, especially if they don`t tend to drive very much during the year or their circumstances change, reducing their journeys with it. Similarly, if the driver suddenly greatly exceeds their mileage, they might have a problem when submitting any claim.

Don`t forget to sort out additional beneficial services for happy motoring alongside your car insurance. For example, roadside assistance and breakdown cover is essential if you want to avoid big bills and stress in an emergency situation. Find competitive quotes and different cover options at www.roadsideassistance.co.uk 

Save money with eCar Insurance includes Breakdown Assistance (fully comp), Legal Cover, European Driving and free 5 years NCD protection


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