Pay as you go young driver insurance

Pay as you go young driver insurance

Car insurance for young drivers is notoriously expensive. 

Fortunately, there are a few options available that can help you lower the cost of young drivers insurance. One option is to purchase a pay as you go young driver insurance policy. 

What is pay as you go young driver car insurance? 

Pay as you go insurance, also known as usage-based insurance, is a type of auto insurance that charges policyholders based on how much they use someone else’s vehicle, usually a parent or guardian. The idea behind pay as you go young driver insurance is that the less you drive, the less you should have to pay for insurance. 

This makes it an ideal option for young drivers who will be using a parents car, by insuring them just to cover the miles they drive. If you’re thinking about purchasing a young driver pay as you go insurance policy, there are a few things to consider. Here’s what you need to know. 

How does it work?

With pay as you go young driver insurance, a tracking device is installed in your car, usually a small box or a plug-and-drive device.

Insurance companies use these devices to track your driving habits, depending on the kind of coverage you have. Some only record mileage, while others capture location data and times of day that you’re on the road. Others will also keep track of things like speed and braking. This information is then utilised to calculate how much you’ll pay for your vehicle insurance premium.

The benefits of pay as you go young driver insurance

There are several benefits to taking out a pay as you go insurance policy, especially if you are a young driver. Some of those include: 

  • Separate policy to car owner – as this is your own separate policy you can build up a no-claims discount and the car owner’s insurance is protected too.
  • More affordable than yearly plans – This means you’re only paying for the insurance when you need it, rather than paying for 12 months of coverage even if you only use the car occasionally. 
  • More flexible than yearly plans – if your circumstances change (e.g., you buy a new car, move to a different city, etc.), you can adjust your insurance accordingly without having to wait until your yearly policy expires. This can be extremely helpful if you need to make any changes mid-way through the year.
  • Free cancellation anytime – This means that if you decide you no longer need the insurance, you can cancel at any time without having to pay any additional fees. This can be helpful if your financial situation changes or if you no longer need the insurance. 

Cautions around pay as you go young driver car insurance

While there are several advantages to having a young driver pay as you go insurance plan, there are also some potential drawbacks that you should consider before making a selection. 

They are: 

  • If you drive a lot of miles each year, you may end up spending more money than if you had purchased a traditional policy.
  • If you have a change in your driving circumstances (e.g., getting a new job or moving houses and having to commute further), your insurance costs could rise.
  • You still need to pay a monthly or annual flat fee to insure your car to be on the road. You need to factor this in when getting insurance quotes so you can determine if a pay as you go young drivers insurance policy will work out cheaper for you overall.

Is a pay as you go young driver insurance policy right for you? 

Pay as you go car insurance is an increasingly popular option for young drivers thanks to its affordability and flexibility. If you’re considering this type of insurance, be sure to weigh the pros and cons carefully to decide if it’s right for you.

For more information on how you can get started with a young driver pay as you go insurance policy, contact us today on 01905 21681.