There will no doubt be a number of our readers who have taken out pay as you go car insurance who have found the cost to be lower than traditional motor insurance. The former type of cover takes more account of the number of miles you travel in your car than the later form of cover when deciding how much to charge you for the insurance.
Well, some interesting research has been undertaken by Finder.com that has revealed that, on average, motorists saved as much as 36% per annum by taking out a pay as you go car insurance policy than a traditional one in 2020. Of course, there will be some motorists who would still have found a traditional motor insurance policy to be cheaper.
Finder.com is a personal finance comparison website.
Finder.com, as part of their research, looked at 150 motor insurance quotes. It found that the biggest saving made was for a 25 year old motorist living in London who only had accumulated one year no claims discount. As well as a number of things, it also took into account the 10 most popular cars to drive in the UK. This motorist saved 48% if taking out pay as you go car insurance when compared with traditional car insurance.
If you are considering arranging car insurance to insure your first vehicle or you have recently received a renewal notice to insure your existing vehicle then why not take a little of your time and not only obtain one or more quotes for traditional motor insurance but also get one or more quotes for pay as you go car insurance to compare the cost of both types of motor insurance. Who knows, you may discover that it is cheaper to arrange pay as you go car insurance. If it is then it is quite quick and simple to arrange/switch to that type of cover. If it is not cheaper then at least it is something that you have explored.
