It is emerging that more and more people feel that their car insurance is too expensive in comparison to the amount they actually drive their car. For example, a person who only uses their car to go to a nearby supermarket twice per week would pay the same as someone who commutes on a daily two hour journey. This may seem unfair to some drivers, which is why 'Pay-as-you-drive' car insurance could be making a come back in the UK's car insurance market.
This form of car insurance was phased out by insurers as the technology was not that reliable, which made some customer's bills inaccurate. However, this time around the in-car tracker is more sophisticated and more reliable and will work out the exact mileage driven, and will be able to bill the customer for how many miles they have driven. The new box can also be used as a tracker, a worth-while investment to those who are security conscious. However, some people have noticed that this method could also be named as be ing similar to Big Brother- having a tracker means that the car can always be located, something that makes some people uneasy.
On the other-hand, those who use their car infrequently enough will see a huge difference in their car insurance premiums. Standard premiums are lower for those who incur a smaller mileage, so for those who very rarely use their car at all, surely a 'pay-as-you-drive premium will help to lower their insurance costs even further. The only problem is, not all insurers have adopted this type of insurance yet, so as it stands the market does not give the consumer much choice. It is predicted that the next few months will see more and more insurance companies offer 'pay-as-you-drive' insurance policies.
When looking for cheap car insurance, make sure you use a car insurance comparison tool to get a good scope of the market. The insurance market can be very competitive so you should be able to get a good deal on your motor insurance.
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