What Is Different Between Pay-As-You-Go And Short Term Insurance
Car insurance as an industry has changed slightly over the last few years. In the past, it would have been far too expensive for an insurer to give out a new policy only for short term cover. The internet has now changed this, making it far more affordable for insurance providers to take on short term clients.
With this change has come a myriad of different types of cover, ranging from short term cover, 1 day car insurance or complete annual insurance. You can also now get ‘pay as you go’ insurance, offering drivers numerous different types of cover for their vehicle.
Anyone who drives in the UK will already be completely comfortable with yearly cover, but a lot of drivers now appear to be slightly confused on when you might want short term or pay as you go insurance, and what exactly they entail. So with that in mind, here is a quick overview of the differences between the two types of cover:
Short term car insurance deal with everything from day car insurance to 28 days (although you may be able to extend this). Short term policies are designed for people who are only intending to use a vehicle for a short period, or are intending to borrow one. Let’s say you’re going to move house, and are planning on borrowing a van from a friend. You’re only planning on using the van for a day, maybe two and don’t want to add it to your own cover. These are the kinds of situations where short term policies can come in useful, allowing you to be covered without spending a large amount of money. Another big plus with short term cover is that it will run alongside your normal policy, meaning if you do have an accident your no claims bonus will remain unaffected.
Pay as you go insurance is a little different. It still technically falls under the short term insurance banner, but will be priced differently. Rather than paying for how many days you plan to use the car, you pay instead dependant on how many miles you drive it. So the quote for your cover may be per mile or per 100 miles, depending on your provider. This can be really useful if you’re not planning on driving the vehicle much, and can be perfect for students.
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