Pay-As-You-Go Insurance: Age Shouldn't Be the Final Word

NorbieG

swingaloo said:

At 78 you have to expect that companies are going to be more wary especially if you havent driven for 3 years. That is a negative not a positive. 

I remember my father in law complaining about insurance and actually going into the insurance office with his 'medals' from work that he was given each year for never having an accident, He said it 'proved' he was a good driver!

In reality he was a menace on the road, pottering along always 2 miles under the speed limit, stopping in the middle of the road to wave some pedestrian across because 'I'm courteous' and thinking his age gave him the God given right to take as long as he wanted doing a 7,9,11 point turn. 

The insurance companies just see your age, they dont know if you run a half marathon every weekend or if you are a couch potato, they dont know if you are a steady Eddie or a wanna-be boy racer. they cant be expected to research every drivers ability or lifestyle.
Fair or not, your age is relevant to the quotes.

Even when i was driving I couldn't get pay-as-you-go insurance.  And that was one of the reasons I SORN my car.  So not driving for nearly 3 years has nothing to do with it.  It's differently ageist.  Some insurance companies even over charge you with ordinary car insurance because of your age.

What quote are you talking about?

XRS200

NorbieG said:

XRS200 said:

NorbieG said:

XRS200 said:

What exactly do you mean by pay-as-you-go insurance?

You pay for what you use.  

Why not buy an annual policy, with the correct estimated mileage.

Because I drive only 1,500 to 2,000 miles a year.

What's wrong with an annual policy with mileage based on your usage? 

DullGreyGuy

XRS200 said:

NorbieG said:

XRS200 said:

NorbieG said:

XRS200 said:

What exactly do you mean by pay-as-you-go insurance?

You pay for what you use.  

Why not buy an annual policy, with the correct estimated mileage.

Because I drive only 1,500 to 2,000 miles a year.

What's wrong with an annual policy with mileage based on your usage? 

In some cases, but not all, it's more expensive and especially if you insure it for 2,000 miles but end up doing 500 instead. 

By Miles offers up to the age of 80 so the OP does have an option to compare to a regular policy... note that both are annual policies just how costs are calculated are different. 

The problem is that many of the sellers of PAYG insurance are intermediaries not the insurers themselves. Its not that uncommon for an intermediary to come up with a great new idea and managed to get insurers to give them delegated authority to write the business however insurers are typically risk adverse and so may put constraints on the delegation, particularly when it comes to the extremes... eg do you really want to give insurance on a £500k Ferrari at £5/mile when the person could do 10,000 miles (probably ok) or 100 miles. 

Often its not just down to the insurer, they in turn will be buying reinsurance and they too have got to be comfortable with the money they will get in exchange for the risk they will be assuming, particularly if we are talking about proportional reinsurance. If insurers are consider risk adverse you should try talking to a reinsurer. 

XRS200

DullGreyGuy said:

XRS200 said:

NorbieG said:

XRS200 said:

NorbieG said:

XRS200 said:

What exactly do you mean by pay-as-you-go insurance?

You pay for what you use.  

Why not buy an annual policy, with the correct estimated mileage.

Because I drive only 1,500 to 2,000 miles a year.

What's wrong with an annual policy with mileage based on your usage? 

In some cases, but not all, it's more expensive and especially if you insure it for 2,000 miles but end up doing 500 instead. 

By Miles offers up to the age of 80 so the OP does have an option to compare to a regular policy... note that both are annual policies just how costs are calculated are different. 

The problem is that many of the sellers of PAYG insurance are intermediaries not the insurers themselves. Its not that uncommon for an intermediary to come up with a great new idea and managed to get insurers to give them delegated authority to write the business however insurers are typically risk adverse and so may put constraints on the delegation, particularly when it comes to the extremes... eg do you really want to give insurance on a £500k Ferrari at £5/mile when the person could do 10,000 miles (probably ok) or 100 miles. 

Often its not just down to the insurer, they in turn will be buying reinsurance and they too have got to be comfortable with the money they will get in exchange for the risk they will be assuming, particularly if we are talking about proportional reinsurance. If insurers are consider risk adverse you should try talking to a reinsurer. 

Unnecessarily complicated.

Continuous insurance enforcement mean it's easier (and often cheaper) to buy an annual policy than short term cover, and complications of SORN.

Annual policy means asset is continually insured.

The OP just has to buy an annual policy to suit his needs (which could be ByMiles).

DullGreyGuy

XRS200 said:

DullGreyGuy said:

XRS200 said:

NorbieG said:

XRS200 said:

NorbieG said:

XRS200 said:

What exactly do you mean by pay-as-you-go insurance?

You pay for what you use.  

Why not buy an annual policy, with the correct estimated mileage.

Because I drive only 1,500 to 2,000 miles a year.

What's wrong with an annual policy with mileage based on your usage? 

In some cases, but not all, it's more expensive and especially if you insure it for 2,000 miles but end up doing 500 instead. 

By Miles offers up to the age of 80 so the OP does have an option to compare to a regular policy... note that both are annual policies just how costs are calculated are different. 

The problem is that many of the sellers of PAYG insurance are intermediaries not the insurers themselves. Its not that uncommon for an intermediary to come up with a great new idea and managed to get insurers to give them delegated authority to write the business however insurers are typically risk adverse and so may put constraints on the delegation, particularly when it comes to the extremes... eg do you really want to give insurance on a £500k Ferrari at £5/mile when the person could do 10,000 miles (probably ok) or 100 miles. 

Often its not just down to the insurer, they in turn will be buying reinsurance and they too have got to be comfortable with the money they will get in exchange for the risk they will be assuming, particularly if we are talking about proportional reinsurance. If insurers are consider risk adverse you should try talking to a reinsurer. 

Unnecessarily complicated.

Continuous insurance enforcement mean it's easier (and often cheaper) to buy an annual policy than short term cover, and complications of SORN.

Annual policy means asset is continually insured.

The OP just has to buy an annual policy to suit his needs (which could be ByMiles).

PAYG is continuous insurance. 

You pay a lump sum up front that represents the insurance for the year whilst the car isnt being driven and then pay a per mile amount for whilst it is driven. 

XRS200

DullGreyGuy said:

XRS200 said:

DullGreyGuy said:

XRS200 said:

NorbieG said:

XRS200 said:

NorbieG said:

XRS200 said:

What exactly do you mean by pay-as-you-go insurance?

You pay for what you use.  

Why not buy an annual policy, with the correct estimated mileage.

Because I drive only 1,500 to 2,000 miles a year.

What's wrong with an annual policy with mileage based on your usage? 

In some cases, but not all, it's more expensive and especially if you insure it for 2,000 miles but end up doing 500 instead. 

By Miles offers up to the age of 80 so the OP does have an option to compare to a regular policy... note that both are annual policies just how costs are calculated are different. 

The problem is that many of the sellers of PAYG insurance are intermediaries not the insurers themselves. Its not that uncommon for an intermediary to come up with a great new idea and managed to get insurers to give them delegated authority to write the business however insurers are typically risk adverse and so may put constraints on the delegation, particularly when it comes to the extremes... eg do you really want to give insurance on a £500k Ferrari at £5/mile when the person could do 10,000 miles (probably ok) or 100 miles. 

Often its not just down to the insurer, they in turn will be buying reinsurance and they too have got to be comfortable with the money they will get in exchange for the risk they will be assuming, particularly if we are talking about proportional reinsurance. If insurers are consider risk adverse you should try talking to a reinsurer. 

Unnecessarily complicated.

Continuous insurance enforcement mean it's easier (and often cheaper) to buy an annual policy than short term cover, and complications of SORN.

Annual policy means asset is continually insured.

The OP just has to buy an annual policy to suit his needs (which could be ByMiles).

PAYG is continuous insurance. 

You pay a lump sum up front that represents the insurance for the year whilst the car isnt being driven and then pay a per mile amount for whilst it is driven. 

To some it could mean multiple short period policies when needed  - hence my earlier question to the OP, what exactly do you mean

NorbieG

DullGreyGuy said:

XRS200 said:

NorbieG said:

XRS200 said:

NorbieG said:

XRS200 said:

What exactly do you mean by pay-as-you-go insurance?

You pay for what you use.  

Why not buy an annual policy, with the correct estimated mileage.

Because I drive only 1,500 to 2,000 miles a year.

What's wrong with an annual policy with mileage based on your usage? 

In some cases, but not all, it's more expensive and especially if you insure it for 2,000 miles but end up doing 500 instead. 

By Miles offers up to the age of 80 so the OP does have an option to compare to a regular policy... note that both are annual policies just how costs are calculated are different. 

The problem is that many of the sellers of PAYG insurance are intermediaries not the insurers themselves. Its not that uncommon for an intermediary to come up with a great new idea and managed to get insurers to give them delegated authority to write the business however insurers are typically risk adverse and so may put constraints on the delegation, particularly when it comes to the extremes... eg do you really want to give insurance on a £500k Ferrari at £5/mile when the person could do 10,000 miles (probably ok) or 100 miles. 

Often its not just down to the insurer, they in turn will be buying reinsurance and they too have got to be comfortable with the money they will get in exchange for the risk they will be assuming, particularly if we are talking about proportional reinsurance. If insurers are consider risk adverse you should try talking to a reinsurer. 

By Mile at MoreThan insured me (online) when i was 75. But when i approached them again (online) last year at 78, they refused to insure me.  I asked for the reason why, but they wouldn't,  or couldn't tell me.  So all that I can assume the reason was, because I was three years older, as nothing else had changed.

NorbieG

DullGreyGuy said:

XRS200 said:

DullGreyGuy said:

XRS200 said:

NorbieG said:

XRS200 said:

NorbieG said:

XRS200 said:

What exactly do you mean by pay-as-you-go insurance?

You pay for what you use.  

Why not buy an annual policy, with the correct estimated mileage.

Because I drive only 1,500 to 2,000 miles a year.

What's wrong with an annual policy with mileage based on your usage? 

In some cases, but not all, it's more expensive and especially if you insure it for 2,000 miles but end up doing 500 instead. 

By Miles offers up to the age of 80 so the OP does have an option to compare to a regular policy... note that both are annual policies just how costs are calculated are different. 

The problem is that many of the sellers of PAYG insurance are intermediaries not the insurers themselves. Its not that uncommon for an intermediary to come up with a great new idea and managed to get insurers to give them delegated authority to write the business however insurers are typically risk adverse and so may put constraints on the delegation, particularly when it comes to the extremes... eg do you really want to give insurance on a £500k Ferrari at £5/mile when the person could do 10,000 miles (probably ok) or 100 miles. 

Often its not just down to the insurer, they in turn will be buying reinsurance and they too have got to be comfortable with the money they will get in exchange for the risk they will be assuming, particularly if we are talking about proportional reinsurance. If insurers are consider risk adverse you should try talking to a reinsurer. 

Unnecessarily complicated.

Continuous insurance enforcement mean it's easier (and often cheaper) to buy an annual policy than short term cover, and complications of SORN.

Annual policy means asset is continually insured.

The OP just has to buy an annual policy to suit his needs (which could be ByMiles).

PAYG is continuous insurance. 

You pay a lump sum up front that represents the insurance for the year whilst the car isnt being driven and then pay a per mile amount for whilst it is driven. 

So, would that work out more expensive than purchasing yearly insurance?

NorbieG

swingaloo said:

At 78 you have to expect that companies are going to be more wary especially if you havent driven for 3 years. That is a negative not a positive. 

I remember my father in law complaining about insurance and actually going into the insurance office with his 'medals' from work that he was given each year for never having an accident, He said it 'proved' he was a good driver!

In reality he was a menace on the road, pottering along always 2 miles under the speed limit, stopping in the middle of the road to wave some pedestrian across because 'I'm courteous' and thinking his age gave him the God given right to take as long as he wanted doing a 7,9,11 point turn. 

The insurance companies just see your age, they dont know if you run a half marathon every weekend or if you are a couch potato, they dont know if you are a steady Eddie or a wanna-be boy racer. they cant be expected to research every drivers ability or lifestyle.
Fair or not, your age is relevant to the quotes.

And what quote are you talking about?  It's about refusing PAYG insurance (point-blank) without even getting to a quote.  Point taken about your father-in-law, but I assure you, I'm nothing like him - I'm just the opposite!  My 55-year full NCD, no fault driving record, with previous insurance companies vouching for that.  However, as you mentioned, that doesn't mean anything, because at the end of the day, it's the making money side that insurance companies are interested in.

DullGreyGuy

NorbieG said:

DullGreyGuy said:

XRS200 said:

DullGreyGuy said:

XRS200 said:

NorbieG said:

XRS200 said:

NorbieG said:

XRS200 said:

What exactly do you mean by pay-as-you-go insurance?

You pay for what you use.  

Why not buy an annual policy, with the correct estimated mileage.

Because I drive only 1,500 to 2,000 miles a year.

What's wrong with an annual policy with mileage based on your usage? 

In some cases, but not all, it's more expensive and especially if you insure it for 2,000 miles but end up doing 500 instead. 

By Miles offers up to the age of 80 so the OP does have an option to compare to a regular policy... note that both are annual policies just how costs are calculated are different. 

The problem is that many of the sellers of PAYG insurance are intermediaries not the insurers themselves. Its not that uncommon for an intermediary to come up with a great new idea and managed to get insurers to give them delegated authority to write the business however insurers are typically risk adverse and so may put constraints on the delegation, particularly when it comes to the extremes... eg do you really want to give insurance on a £500k Ferrari at £5/mile when the person could do 10,000 miles (probably ok) or 100 miles. 

Often its not just down to the insurer, they in turn will be buying reinsurance and they too have got to be comfortable with the money they will get in exchange for the risk they will be assuming, particularly if we are talking about proportional reinsurance. If insurers are consider risk adverse you should try talking to a reinsurer. 

Unnecessarily complicated.

Continuous insurance enforcement mean it's easier (and often cheaper) to buy an annual policy than short term cover, and complications of SORN.

Annual policy means asset is continually insured.

The OP just has to buy an annual policy to suit his needs (which could be ByMiles).

PAYG is continuous insurance. 

You pay a lump sum up front that represents the insurance for the year whilst the car isnt being driven and then pay a per mile amount for whilst it is driven. 

So, would that work out more expensive than purchasing yearly insurance?

They are both yearly policies, just one you pay a fixed price based on an estimated mileage the other you pay a fixed price on a 0 mileage policy and then a per mile fee based on how much you actually drive. 

Which works out cheaper will be very dependent on personal circumstances. There are less insurers offering PAYG which would typically mean prices arent as keen but they can work if you have very variable mileage thus saying what the total mileage up front is hard and it saves you saying 10,000 as thats worse case scenario and then only doing 1,000 but avoids you saying 1,000 then having to pay an unknown additional premium plus admin fee in 2 months time when you've already done 1,000 miles.

XRS200 said:

DullGreyGuy said:

XRS200 said:

DullGreyGuy said:

XRS200 said:

NorbieG said:

XRS200 said:

NorbieG said:

XRS200 said:

What exactly do you mean by pay-as-you-go insurance?

You pay for what you use.  

Why not buy an annual policy, with the correct estimated mileage.

Because I drive only 1,500 to 2,000 miles a year.

What's wrong with an annual policy with mileage based on your usage? 

In some cases, but not all, it's more expensive and especially if you insure it for 2,000 miles but end up doing 500 instead. 

By Miles offers up to the age of 80 so the OP does have an option to compare to a regular policy... note that both are annual policies just how costs are calculated are different. 

The problem is that many of the sellers of PAYG insurance are intermediaries not the insurers themselves. Its not that uncommon for an intermediary to come up with a great new idea and managed to get insurers to give them delegated authority to write the business however insurers are typically risk adverse and so may put constraints on the delegation, particularly when it comes to the extremes... eg do you really want to give insurance on a £500k Ferrari at £5/mile when the person could do 10,000 miles (probably ok) or 100 miles. 

Often its not just down to the insurer, they in turn will be buying reinsurance and they too have got to be comfortable with the money they will get in exchange for the risk they will be assuming, particularly if we are talking about proportional reinsurance. If insurers are consider risk adverse you should try talking to a reinsurer. 

Unnecessarily complicated.

Continuous insurance enforcement mean it's easier (and often cheaper) to buy an annual policy than short term cover, and complications of SORN.

Annual policy means asset is continually insured.

The OP just has to buy an annual policy to suit his needs (which could be ByMiles).

PAYG is continuous insurance. 

You pay a lump sum up front that represents the insurance for the year whilst the car isnt being driven and then pay a per mile amount for whilst it is driven. 

To some it could mean multiple short period policies when needed  - hence my earlier question to the OP, what exactly do you mean

Never seen any temp car insurers refer to themselves as PAYG... its limited to two types of policy, this type where its a primary insurance and some for learner drivers when driving on their parents car and its a secondary policy.

I know the OP doesnt like people making assumptions about them because of their age but given their age and the length of time they say they've been driving, I am guessing they arent a learner using their parents car still.