Pay-as-you-go car insurance means you never pay more than you need.
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Pay-as-you-go car insurance means you never pay more than you need.
Compare quotes at mustard.co.uk – just tap the green button above to start your online quote or call to speak to an advisor.
By Miles is a car insurance provider that offers pay-as-you-go car cover. With this type of policy, you only pay for the miles you drive. So, the less you drive, the less you’ll pay for insurance.
By Miles was one of the first providers to offer this type of insurance in the UK although other insurers are now following.
If you take out a policy with By Miles, you’ll pay a fixed annual fee to insure your car when it’s not being driven. You’ll then only pay for the miles you actually drive.
To calculate your mileage, By Miles will send you a tracker which you’ll need to plug into your car’s dashboard (they’ll send you instructions). This will record the miles you do, which you’ll then be billed for each month.
Crucially, the tracker provided will only track your mileage, it doesn’t monitor your driving as a telematics device would.
If you have a new car, you might not need to install a tracker as the By Miles app should be able to connect directly to its mileometer.
Pay-as-you-go type policies are ideal if you only drive a limited number of miles each year.
If you drive fewer miles than the UK average (7,400 miles), you could benefit from a pay-by-mile policy. This might well be the case if you only drive very occasionally for emergencies or running errands locally. It could also apply if you live with your parents and occasionally borrow their car.
Pay-as-you-go policies provide the same levels of cover offered by standard car insurance:
It’s worth bearing in mind that most pay-as-you-go policies (including By Miles policies) provide comprehensive cover as standard.
Like other types of car insurance, you’ll also be able to add other features to your policy, which could include:
If you’re keen to add value to your policy, it’s worth comparing what’s on offer in the first instance. Some insurers may already include a range of features that you need to pay for with others. For example, By Miles policies will protect your no claims bonus as standard.
No, pay-as-you-go insurance isn’t the same as short-term or temporary car cover. Although you could say there are similarities in the sense that all these policies cater for drivers covering a limited number of miles.
Short-term and temp cover only covers a specific and limited period of time – for example, one day, a week or six months. Whereas pay-as-you-go insurance is still designed to give you annual cover but only charges you for the miles you actually drive.
When you consider policies, take a minute to check exclusions and limitations. Almost all policies come with restrictions but specialist policies like pay-as-you-go cover might have more conditions than standard insurance – for example:
If you drive very few miles every year, a pay-as-you-go or limited mileage policy could be a good choice as it might save you money.
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