There is one major factor causing the popularity of pay-as-you-go car insurance. Simply, car insurance itself has become horrendously expensive, partly because of fraud and partly because of the greed of ambulance chasers, and those they buy introductions from; not only garages, solicitors, car hire companies but also even the insurance companies themselves. It is not these insurance companies who suffer from this, it is people like you and I who have to buy car insurance. The current system is an absolute disgrace crying out for reform, but at the moment we are stuck with it.

The crowning joy of pay-as-you-go insurance is that you don't have to buy it for a year, but can start off with a single month of cover and keep it going right up to a maximum of eight months; however at this level it has ceased to be economical and it would almost certainly have been cheaper to have bought a years cover in the first place. However, if you are not sure how long you want your insurance for, or if you only need it for a month for two it may be just what you are looking for. The way it works is quite simple; you fill in a normal car insurance proposal form but when you pay you do so only for the first month, by credit card. At the end of that month and all subsequent months your card will be debited for a payment for the following month; unless you give a minimum of two weeks notice that you intend to cancel the policy, which can be done easily and quickly online. It is very important that you do not forget this otherwise you may find yourself paying for an extra month's cover that you do not want.


Like all insurance policies you will have a choice of third-party, third party fire and theft or fully comprehensive cover; and if you wish to drive in Europe fully comprehensive cover for this is available, at a small extra premium, as is roadside assistance.

A particular benefit of this type of policy is that the insurers have no objection to the policyholder using it to get a car released from a police pound; this may seem an unlikely scenario but around 500 cars are impounded every day in Britain, for everything from driving without insurance to parking offences, and around 40% of these are subsequently scrapped because the owners have never claimed them.

Cover is available for motorists aged between 17 and 90, and in order to keep costs to a minimum it can only be bought online.



Copyright 2006