Car insurance discounts: Drivers can save £150 a year through new policy as demand soars

Car insurance discounts: Drivers can save £150 a year through new policy as demand soars

Car insurance customers can save on their policy by switching to a pay as you go insurance cover which only charges drivers on miles they have driven rather than a flat fee. The new system has been beneficial to drivers under lockdown with almost two in five working exclusively at home during the lockdown.

Another one in ten have worked from home during some part of the week under the shutdown and could have also saved on their regular charges.

With companies embracing the new flexible work from home culture, up to 11million UK workers could make savings on their regular payments.

The policies could also help road users who do not travel many miles such as families or those who work locally.

Phil Ost, car insurance expert at Zurich warned the insurance industry needed to “adapt” to consumers changing habits.

READ MORE: Car insurance prices at lowest level for four years

Leading pay-as-you-go provider By Miles says drivers can secure a deal from just £170 with an extra 3p added on for each mile they drive.

This compares to the average standard car insurance price which stood at around £460 during the second quarter of 2020.

Demand has dramatically increased for the new service with By Miles reporting a 75 percent increase in sales over July compared to the start of 2020.

The firm has revealed that drivers should consider switching to pay-as-you-drive cover if they cut down their driving by just 150 miles per week.

“It doesn’t make sense to pay the same price month-on-month if your driving habits keep changing, so insurance needs to evolve to work in this new world.
“It’s time to move towards car insurance that offers more flexibility and actually encourages people to drive less.
“Our advice to anyone that wants to drive less is – if it’s under a mile, walk or car share where possible, and if you’re able to cut your mileage down to under 150 miles a week, or about 7,000 miles a year, it’s worth considering a pay-by-mile insurance policy.
“You could save over £150 while saving the planet at the same time. Now more than ever, it’s clear that people must be rewarded for driving less.”
Experts at MoneySuperMarket have revealed that pay-as-you-go insurance could also help higher-risk drivers such as younger motorists and those with previous driving convictions.

Published at Wed, 26 Aug 2020 13:45:25 +0000