Pay as you Drive car insurance

MrPea

Hello

My car insurance is due for renewal in a few weeks and I've been looking around. I came across Norwich Unions pay as you drive insurance and it seems to look really good. It seems to come out about £50 cheaper - but this is assuming I'm fairly accurate on how much I drive. Here's my few dilemnas which it would be REALLY good if I could get some other opinions on...

NU pay as you drive is quoting me about £270 for the year. The lowest quote I can get elseware is about £320.

NU say they'll cap the pay as you drive to what their normal quote is - which is about £400.

I really like the idea of having a device in the car which will track it if the car is stolen. And apparently it has an emergency button on it to call the emergency services out if needed (just a piece of mind thing I guess).

* I have heard (on the grapevine) that if you pay monthly for your car insurance, then this potentially ups the premium for later renewals (no idea if this is true or not). - Would Pay as you Drive count as paying monthly, clearly there's no annual option!

If anyone's had any experience on this it would be really cool to hear from you, or if anyone wants to add there own 2p I'd be sooo very grateful!

Many thanks, Paul

:j

Altarf

MrPea wrote: »

I really like the idea of having a device in the car which will track it if the car is stolen.

Unless you own an irreplaceable classic car I have never quite understood why someone would actually pay extra to get a stolen car back after it has been driven to death by a TWOCer.

MrPea wrote: »

And apparently it has an emergency button on it to call the emergency services out if needed (just a piece of mind thing I guess).

Err, mobile phone?

MrPea wrote: »

Would Pay as you Drive count as paying monthly, clearly there's no annual option!

The normal Pay as you Drive from NU is an annual policy, even though you may pay monthly -

"Pay As You Drive"™ insurance is an annual policy so is not suitable as short term cover. Norwich Union Direct is however, able to offer a tailored short term policy available on this website.

http://www.norwichunion.com/pay-as-you-drive/frequently-asked-questions.htm

Anyway, from the figures that you have quoted, the maximum saving that you could make is £50, but you could lose £80 if you have got your mileage estimates wrong or your use of the car changes. As the charges depend on not only the time of day that you drive, but also the type of roads that you drive on, it depends on how good your guess is (I hope that you have changed the 'guess' figures that NU suggest, to something that more accurately reflects your own use of the car).

PAYD insurance is one of those things that sounds like a good idea, but the number of people that would benefit is quite limited.

Puttytat

Hi there,
There are now a few threads running on this subject - I am now into my second year and it really is the cheapest way for me to insure my car. My savings worked out at a lot more significant than yours though, I saved approximately £200 compared to traditional insurance.
It really is aimed at low mileage users. I very rarely commute to work and therefore only use my car for shopping trips and socialising.
PM me if you want to know more - I'll be happy to give you further information.
Putty

leb2005

hi there
i would like more inforamtion on this puttytat
thanks

Puttytat

leb2005 wrote: »

hi there
i would like more inforamtion on this puttytat
thanks

PM sent.
Putty

Puttytat

MrPea,

Check your inbox - I have sent you a more detailed breakdown of my situation.

Hope it helps you decide whether or not it's suitable.

Putty

boredofbeingathome

I am on payd insurance and it has saved me a tremendous amount of money.Nu have offered to cap it so it would not go above my normal quote which was £250 per year. I have full ncd,fully comprehensive and have also got full breakdown recovery in it . I have not taken the option of the satnav though as i tend to drive locally and know my way around. So far it has cost me about £90 give or take a few quid. Given that they reckon it should cost me about £150 in total for the year it looks like it will be on course. The highest quote i had for my car, was about £370 so i reckon that i will potentially have saved over £220 with payd insurance. Although i would never have insured at that price anyway.

uktyler

We use, and save £100+ a year, because we don't use the car much. However don't buy it if you are looking for a tracker, you have to pay extra for this option. The sat nav and camera warnings are very expensive too.