Pay As You Drive Insurance

November 20, 2020 12:33 pm Published by

Why pay the same for car insurance if you’re driving less?

A number of insurers have woken up and smelled the coffee during lock down, by recognising that the vast majority of “once were office workers” are no longer commuting to work on a daily basis and are firmly ensconced (maybe) behind the desks of their new and exciting home offices.

Many of these urban workers are also not driving to the shops anymore and given that they are not being eyeballed by management, might opt to walk to do the daily shopping or gym. Many flexi-time workers are enjoying the benefits that the work from home Covid19 has enforced .  But what does this have to do with car insurance?  Well, the less time you spend behind the wheel, the less risk you incur for your insurer, and therefore smart insurance companies are opting to offer you a reduction in your monthly insurance premiums.

Of course these Pay As You Drive schemes are nothing new and I recall Hollard having offered this many years ago to low mileage customers – but recent advances in onboard telematics have enabled car insurance companies to capitalise on this technology through the use of smart phones and Apps.

How does Pay As You Drive Insurance work?

Well, once you have signed up with your insurers Pay As You Go insurance option, you would then need to either install an App on your phone which tracks your daily movements, or have a device installed in the car.  The GPS and the accelerometer in your smart phone are able to dete rmine when you are moving away from your usual locations, such as Office location or Home Location and when you move faster than a human can walk or run, it’s starts the clock on your driving experience and presto, you’re being monitored.  Perhaps a little invasive you might say – but if they offer you serious financial savings then really, does it matter?  Of course they are not interested in knowing your exact location and so if you’re visiting your best friend or the doctor your private life remains private – unless you trigger the Please Help Me button, which might be very useful if you have been involved in a accident, right!

Who exactly is offering Pay As You Go car insurance?

King Price (gotta love them), calls it ‘Pay per K’ and their product is called: Chilli.

Naked Insurance (underwritten by Hollard)  – when your car is not in use, you pay less.  You can opt to Pause your cover and your Premiums too.

Discovery Insure: Not quite in the “Pay As You Drive” category, but “Pay For How You Drive”.  This is a true telematics in motion product, where you get more Discovery Rewards for driving well.

 

 

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This post was written by Compare Car Insurance