I am basically looking for an insurance, which the premium is based on how many miles I drive per year. I know that, for example, in some countries they can install a small computer in your car. The insurance then checks the number of miles driven.
I don’t use my car really often, probably less than 1000 miles per year. Any suggestion?
Thank you in advance for your help.
Most premiums take this into account, and it doesn’t make that much difference.
Also your premise that doing less than 1000 miles a year may make you a better risk than someone who does 10 or 20 thousand is questionable.
When you apply for a quote with any insurer, they will ask you for your typical annual mileage. Your answer along with the answer to the other questions they ask will determine your premium, but mileage does not make a great deal of difference.
Insurers see it that people who do high mileage are more prone to accidents because they spend more time on the road, but people who do low mileage are also more prone to accidents because they are not building up driving experience, so ideally, the insurer is looking for people who do average mileage of 10000-12000 per year.
There are also policies you can buy where they install a smartbox in your car. Your low mileage would keep the cost down with one of these policies, but it also takes in to account your speed, handling and night driving, so you also need to ensure your driving is of a good standard. I know that Co-operative, Coverbox and Insure The Box all offer these policies which are primarily aimed at younger drivers.
All insurers will ask for your estimated mile useage for the year, which will be factored into the cost. But no trustworthy insurer will charge per actual mile
Insure the Box
Launched in 2010, drivers save an average of ВЈ500 per policy with Insure the Box, rising to ВЈ821 for first-time motorists. Drivers buy a bulk of insurance miles, starting with 6,000, and a small clear box is installed for free behind the dashboard.
Policy holders can earn up to 100 bonus miles per month if they are driving according to the safety rules. If you go over the 6,000 miles, your bonus miles kick in and if youвЂ™ve used them all up you need to buy top-up blocks вЂ“ at a cheaper price than the original premium.
At the moment 60,000 people are signed up to Insure the Box, making it one of the biggest types of black box insurer. Although itвЂ™s primarily designed for young drivers, drivers of all ages can apply.
Pros of Pay As You Drive car insurance
If you don’t drive a lot, your premiums could be far less than a standard car insurance policy.
It might make you think about the car journeys you make and whether you really need to make them.
Cons of Pay As You Drive car insurance
If your circumstances change, for example you need to travel further to a new job, you may end up paying more than you would for a standard policy.
If you drive mostly at night, even only infrequently, a PAYD policy may be more expensive than a standard one.
Your driving’s being tracked вЂ“ you may see that as a pro, but a lot of people see it as a con.
Make sure you shop around before you opt for a PAYD policy, just in case it would be cheaper to go for a standard deal instead.
Yes, you can have a box fitted, by several companies, or you can state your estimated annual mileage to your insurer. I’d do the latter, as you will be paying for the box fitment and you wouldn’t recoup the up-front cost, with such a low mileage.
there is not a lot of point in charging you by the mile if someone comes and steals your car then burns it out
if you only do that much miles a year, don’t get a car your wasting your money
It’s something I’ve wanted for many years but it doesn’t exist in the US.