Pay As You Go Insurance

Internet has completely changed the consumer world today. All over the world consumers have not become acquainted with comparing and contrasting the products and services they avail on the website. That is why most of the clients now make thorough research before the commit to any of the policies. In result the Insurance industry is undergoing tough competition.

Pay As You Go Insurance

Drivers these days are offered options of a different type of Insurance policy that is called the Pay As You Go Insurance. Exact period of driving as well as the roads that the driver takes to while driving are the two main considerations for approval of such Insurance plan. Usually a month is considered to be the base period. Another major consideration is the driving period.

Requirement of Device

Car Insurance companies need to assess exactly the driving ways and period for sanctioning this type of Insurance plans for their clients. An imperative outcome of the requirement is that the owner should attach some device to his or her car that enables the Insurance company to keep track of their driving habits. Akin to the well known GPS system, such devices require some additional costs to be paid to the provider company by the client.

Benefits of Pay as You Go Insurance

Accuracy of recording the journey history of the client is one of the major benefits that are derived from this type of Insurance. For instance when someone drives at 70 miles per hour during the weekends only for the entire month on the dual carriageway, he or she may not be charged with the cost of increased risks of driving in a 30 zone in course of that period.

More Suitable For Certain Drivers

Ordinarily the Pay As You Go Insurance is more suitable for some of the drivers. Matured drivers will always get the lower premiums. However the option may not be as suitable for many others. Similarly, installing a device for tracking the driving habits could either be good or bad for the driver concerned. For instance it could be easier when the vehicle is stolen. At the same time it may not be convenient for all drivers that their track habits become known to the Insurance companies.

Pay as You Go Insurance Features

Usually Car Insurance is calculated on the basis of multiple factors including the how, when and where of the driving. Drivers driving in highly dangerous timings will have the Insurance costs enhanced considerably. Pay as you go Insurance takes into consideration the driving periods in determining the premium. Such plans are something akin to the pay as you go phone calls or pay per click on the web. On tracking the driving habits and use of the car, the Insurance provider will also takes into consideration the future use of the car by the driver.

Issues in Consideration

Main issue involved in this type of Insurance is the infringement into the privacy of the driver. Moreover many fear that records of their driving habits could lead them into legal problems through the law enforcement government agencies.

Client is the best judge of relevance of the Insurance plan to be obtained.