Pay as you go insurance

What is pay as you go insurance?

Pay as you go car insurance offers an alternative to annual policies by providing insurance cover for shorter, or more flexible lengths - sometimes for as little as an hour.

Here’s a rundown of three companies who offer this type of car insurance and their average rating on Smart Money People.

Cuvva

Car insurance that provides temporary cover 

Cuvva provides short-term cover for cars and vans. You can use it to drive someone's car or insure your own, with fully comprehensive policies from one hour up to 28 days. You can instantly extend your cover in the app and separate policies mean the car owner’s no claims bonus is protected.

The amount you’ll pay for Cuvva temporary car insurance varies on a number of factors including your age, job title, the car you drive and where you live.

At the time of writing, Cuvva are rated an average of 2.75 out of 5 by our Smart Money People community.

insurethebox

Black box insurance offering Top Up Miles

With insurethebox, you can choose an initial mileage of 6,000, 8,000 or 10,000 miles. You can then buy additional Top Up Miles that can be rolled over to the following year at renewal. You can track your driving in the portal and earn monthly bonus miles by driving safely.

Unlike some black box insurers, insurethebox don't fine you for driving late at night and there are no other curfews on your driving.

At the time of writing, insurethebox are rated an average of 3.99 out of 5 by our Smart Money People community.

By Miles

Pay per mile, rather than per year

With By Miles, you pay for what you use and will always be covered by comprehensive insurance.

You can either plug in a Miles Tracker, or for newer cars, you can connect directly with your car’s mileometer. You get a unique per-mile rate to cover the actual miles you drive, so you avoid paying for more than you use. With the By Miles app or online dashboard, you can automatically see the cost of your journeys. There’s also some handy driving tools and reminders.

At the time of writing, By Miles are rated an average of 4.89 out of 5 by our Smart Money People community.

Pay as you go car insurance reviews

If you’re a low-mileage driver, have special driving circumstances, or just need a quick ad-hoc policy, pay as you go insurance is an option to consider.

Sometimes you may have an unexpected situation where you need to drive someone else’s car and pay as you go car insurance could help in this scenario. But, if you can, work out how many times each year you’re likely to use a pay as you go policy. Compare the total cost over a year with the price of an annual policy to check you’re choosing the best option.

Price is important, but it’s not the only element to factor into your decision. Knowing how a company handles claims or how they treat their customers is also something to research. One way you can do that is to read temporary car insurance reviews from other customers.

Our Smart Money People community have shared their feedback on temporary car insurance providers so you know who they recommend and who they think you should avoid. If you’ve used a temporary car insurer before, you can also leave your own review and help other people with their research.