The return of pay as you drive car insurance

This week has seen the resurrection of pay as you drive motor insurance to UK motorists by new company Coverbox, following Norwich Union's withdrawal from the scheme last year due to low take up of the policy and high running costs. The only other offering in this arena is through More Than with their Drivetime product which has a strict acceptance criteria limiting the number motorists who will be eligible.

The pay as you drive concept is ideal for younger drivers or those that are seen by the insurers to be "high risk" who may not necessarily be able to find a good level of cover and more importantly at a reasonable price, likewise it's a great concept for anyone who does limited mileage or drives mainly during off peak hours as they can benefit from lower rates.

Attractive as this may seem, there is the requirement to have a GPS tracking box fitted in your car which records your mileage and the times of day in which you have been out in your vehicle. This big brother "spy in the cab" element can be a turn off to most people who may not want their driving habits analysed in quite so much detail.

Ultimately with most purchases the deciding factor is nearly always made by cost and this will be no different, with many car insurance companies out there competing for our business it's no surprise that despite the predicted increase in premiums this year there still some great deals to be had on car insurance now with the likes of Tesco for example who are currently offering cash back upon purchase, or Kwik Fit who are giving away a free MOT with each policy.

Our research has proven that most of us can make great savings of around 20% on our motor insurance policies by shopping around and although this type of cover is a breath of fresh air to those drivers who have struggled to get a good level of cover at a good price because of their personal circumstances, such as younger drivers who low cost motor insurance is difficult to come across, or drivers returning to the roads after a ban, or maybe even you've got a classic car you want to insure. It's strongly recommended that anyone considering this type of policy would be wise to first get a quote for standard insurance as it may work out cheaper than you actually think.

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2009-01-16 17:19:24 © Moneyextra.com