Auto Insurance

In old days, one just has to pass the driving test to get the license in prior and he could answer the call of the roads immediately. At that time, he could go anywhere and at any time he wants and there were no high authority figures monitoring his shoulders and telling him what to do and what not to do. Well, gone are those days when insurers used to work out premium using pencil on the back of an old envelope and making guesses when, where and how far you are going to drive.

Today, technology can answer all the questions without any actuary using pencil to estimate the premium amount of your car insurance. ‘Pay as You Drive’ is a form of car insurance that works in the similar way as 'pay as you go' mobile phones in which you shell out money only when you actually use it. It is the most economical form of policy which states that, in case your car is parked and if you are using it only during the weekends, then you will be charged less car insurance premium. In this cost effective technique, there is a device which will be fitted to your car that transfers all the details of your journey via satellite to your insurer. At the end of every month you will be given a bill, which is estimated from the information sent by this typical tracking device.

The method through which your bill is calculated mainly depends on two key factors; type of road for your drive and the time of the day. During peak hours from 11pm to 6am, drivers would be paying £1 for each mile travelled because that’s the period when most of the accidents happen. Driving at 70mph on a motorway will be economical than driving at 30mph in rush town. So, your bill will be reflection of the type of road and the time of the day you have travelled.

‘Pay as You Drive’ form of car insurance is definitely good news for the insurance policy holders of the UK. ‘The lesser you travel, the higher you save’ and this is the key route to inexpensive car insurance. It is definitely going to save significant amount of premium on your insurance policy and the only thing you need to do is to sacrifice your privacy right as the insurance officer will know precisely where you drive through tracker device.