Pay car insurance by the mile

penarthian

Norwich Union, has a car insurance where you pay as you drive. As we try to use public transport out car is not needed as much as it was but under normal insurers it costs the same when you do not use your car and it sits in the garage, even declaring lower milage.
The added bonus is the RAC fit a GPS, SatNav ,for FREE. They need to do this to bill you but for a month you can use it to see how good it is and after that you can pay a small per journey but only when it is needed .
There is a speaker in the car and you press a button and speak to A REAL PERSON. They take your journey details and then send it to you just as an ordinary Satnav voice to guide your journey:T . There is no screen so no security/theft implications. Also the centre is there for breakdowns and in an emergency. If the car is stolen it is tracked.
I have had the system fitted for 3 months now and I have yet to find a downside to it.:j

bigwalnut

you say 'Penarthian', you have had the sat nav fitted etc. but what most people reading this will want to know is how much 'per mile' does it cost so that we can all work out wether it is worth it.

How much to fit and how much to take out??

answers anyone please

Biggles

It seemed very expensive to me.

Plus the fact that they are almost telling you what roads you can drive on.
http://www.norwichunion.com/pay-as-you-drive/pricing-older.htm

For example, you travel on a motorway at off-peak times and it will cost you 41p a mile. If you prefer, as we do, to meander through smaller, single-carriageway roads (even A-roads) and you'll pay £1.41 a mile.

If you did 10,000 miles and they were predominately in town during the day, mileage plus the £132 standing charge would come to £600!

Come to think of it, the standing charge alone is more than I paid for my 'normal' motor insurance policy this year!

Savvy_Sue

Another possibility for those of you who don't do many miles and can predict when you need a car, more or less, is a City Car Club.

Biggles

Bear in mind that, if you do a low mileage, if you declare that when you take out/renew your insurance it will lead to a reduced premium.

Yes, I know the next question is, 'How will they know how many miles I do?', and I have no idea!

bigwalnut

Thank you Biggles.

I know how many miles per annum i do by the M.O.T. on my car and the service record I keep and i do just under 4,000 miles.
My insurance this year was £160 so having a pay as you go would not benefit me.;)

Most people can do the same and even if you have bought the car new and have it regularly serviced it can be worked out or 'Proven' as the case may be which is what insurance companies find out when researching a claim.

penarthian

I drive a Smart car so these details will be for that car but you can obviously get your own quote. There is a flat premium regardless of use and for me this is 71p a day.There is also peak and off peak rates eg Motorway driving costs me £ per mile 0.0037 if I drive before 10am and 0.0026 after 10am. and before midnight, peak is also for a few hours around midnight. There are also different charges for different types of roads however the most expensive off peak charge is still only 0.0176 and peak 0.0300.
Last month my bill was £1.36 and included travel from Canterbury via Swindon to Cardiff a total monthly drive of 290 miles .
If your circumstances are different your bill could be less or more than this but it is worth a quote if you do low milage.
I first saw this type of insurance being recommended for young male drivers who needed their car in the day but agreed not to drive at night, the peak times for accidents in that age/gender group
Hope that answers your questions

Biggles

penarthian wrote: »

I drive a Smart car so these details will be for that car but you can obviously get your own quote. There is a flat premium regardless of use and for me this is 71p a day.

Good grief, you're paying £260 a year plus mileage for a 'Smart' car? I should change your insurer at the next renewal, they're having a laugh with their 'pay as you drive' nonsense.

dwileflunker

Biggles wrote: »

Good grief, you're paying £260 a year plus mileage for a 'Smart' car? I should change your insurer at the next renewal, they're having a laugh with their 'pay as you drive' nonsense.

I agree. I don't pay that for a much bigger car with a protected policy. I suggest penarthian tries some of the comparison sites, he might be quite surprised.

penarthian

whoops . Sorry I got the daily rate wrong. I paid £7 in TOTAL last month fully comp with added bits. I had quotes from Tesco and SAGA both much higher.
Sorry for the mistake

bigwalnut

I agree, I think Penarthian is paying way over the top.

I know circumstances are different for each individual
but I run a 1600 Ford Focus and the 'cheapest quote' i had online was £129 full comp. Obviously cheapest is not always the best and i did not accept this but if i was really pressed as long as i was legal on the road i would accept it had i been short of cash.