Pay per mile Car Insurance in the UK is a car insurance policy where a driver’s mileage determines the insurance cost. When you drive more, you pay more; when you drive less, you will pay less for auto insurance. The financial benefits of a mileage-driven car insurance policy can be enormous.
What is mileage-based car insurance (UK)?
Mileage-based car insurance is based on how much you drive your car. It’s nIt’sor everyone – if you spend a lot of time on the road, it might not be the best option because it could cost more than a traditional policy.
Mileage-based car insurance works because the less you drive, the less likely you are to make a claim. Your insurance provider will monitor how many miles you drive to get an accurate picture of your driving, allowing your premiums to be adjusted accordingly. The average UK car insurance cost £460 in 2020, so for those who use their car infrequently or young drivers who struggle to afford premiums on standard policies, this could reduce the cost of your insurance.
What alternatives to mileage-based insurance are available?
Of course, there’s the option to choose a standard insurance policy. However, you might pay more than necessary if your car isn’t driven regularly. Other options are similar to mileage-based car insurance, including:
- Pay-per-hour insurance has a similar structure, but premiums are based on the time you spend on the road instead of the mileage you cover.
- Telematics insurance involves installing a telematics box in your car or using an app. This allows your insurer to monitor how well you drive, including habits like acceleration, braking, and time spent driving.
Why choose mileage-based car insurance?
The most significant benefit of mileage-based insurance comes from the potential savings. This car insurance might suit you if you use your car infrequently or only travel short distances.
If you’reyou’re priced out of standard car insurance policies, mileage-based insurance could get you the right coverage at a lower cost. However, if you’reyou’reng at this type of insurance for cost reasons, it’s iit’stant to think realistically about how much mileage you do.
Who should get mileage-based car insurance?
Mileage-based car insurance is a great choice. It is for drivers who don’t don’t much mileage and who might not want to pay for expensive extras. It’s aIt’sa cost-effective choice for young drivers and those who spend a lot of time in the car, such as taxi drivers or couriers. Most insurance companies use a black box in your car to determine how much you drive. This allows them to provide cheaper premiums for people who drive less. Mileage-based car insurance is for anyone who regularly drives more than 5,000 miles every year. It is available for almost all new cars (and some older ones).
If you are unsure if you should get mileage-based car insurance, Parkers is a valuable resource for advice.
How much does this type of insurance cost?
How much you pay is generally based on the following:
- A cost for when your vehicle is stationary.
- A cost for each mile driven.
Exact costs will vary as with any other car insurance type. Generally, you can also add extras onto a mileage-based insurance policy, such as:
These add-ons will also affect your premiums. To check how much mileage-based insurance could cost you, compare the options now with Insuro
Is this type of this car insurance worth it?
Mileage-based car insurance is an alternative to the traditional method of charging customers based on their car model, vehicle category or driving history. It’s dIt’sned to prevent insurance providers from overcharging people who do not use their cars much. The probability of an accident is directly proportional to the distance driven in a given period. By monitoring this mileage, companies can decide how much an individual should spend on car insurance by comparing this information with the average cost per mile driven.
Mileage-based car insurance takes into account how far your car travels. Depending on the policy you take out, you could pay less for your renewal each year, but it depends on how much you drive. It’s nIt’slly not available with an annual mileage allowance, only as standard. The amount of money you could save will depend on how many miles you cover each year.