Pay As You Go Car Insurance

Car Insurance As and When You Need It

Pay as you go car insurance is a type of insurance where you only have to pay for the mileage that you cover. This means that you are offered a premium which is accurately based on how far your car has travelled. Drivers who do not have pay as you go insurance have their premiums calculated based on their driver profile (using your demographics) which is oftentimes inaccurate at best.


Pay as you go car insurance, otherwise known as pay as you drive (PAYD) starts with adding a small black box to your dashboard which is the size of a smartphone which is able to calculate your driving speed, the distance you have covered and even whether you are driving at nighttime or daytime. Pay as you go car insurance is also known as black box insurance due to this device. The use of this box is also known as telematics technology.

This kind of insurance is ‘pay as you go’ as you are able to ‘top up’ on your miles if you go over the number of miles your insurer issues to you as your estimated mileage. If you do not use all of your predicted miles, most insurers will allow you to roll them over to the next year.

The cost per mile will differ between insurers.


Pay as you go car insurance is a great option for people who tend not to cover many miles in their vehicle per year. Many citizens who have regular insurance end up paying for more miles than they actually cover due to the fact that their mileage is not calculated by their insurer.

Pay as you go insurance also enables you to be rewarded for careful driving. Since telematics technology calculates your speed, your distance and if you are travelling night or day, it is able to create a good picture of how safe a driver you are. If you are shown to be a careful driver by the data it produces, your insurer will be able to offer you a better deal as there is a less of a chance that they will have to pay-out as a result of your risky behaviour behind the wheel. Pay as you go schemes ultimately rest on the notion that the fewer miles you do, the less you are on the road and therefore the risk of an accident is reduced.

The technology is also able to calculate the specific time of day at which you are on the road so that you can be rewarded for travelling during off-peak hours.

A further benefit of having a black box installed in your car, aside from the large amounts of money you could save, is that it will incentivise you to be a better driver and keep yourself and your loved ones safe on the road.


Young drivers are statistically more likely to get into an accident on the road, so their car insurance policies will almost always reflect this in their premiums. This means that young drivers who do drive safely tend to pay for the misdemeanours of others.

Pay as you go car insurance is most advantageous to drivers under the age of 25 as they are more likely to be overcharged than any other age group.

Many young people study full-time and so their car doesn’t get much use during term times. For students, then, it can be seriously advantageous to opt for pay as you go insurance. Proper Finance is here to pair you with the best pay as you go provider for you.


In order to get car insurance with one of Proper Finance’s trusted insurers, you must:

  • Be at least 17 years of age;
  • Hold a valid EU driving licence;
  • Be a permanent resident of the UK;
  • Have a vehicle that is owned and registered by you, your spouse, partner or civil partner at your address;
  • Have the relevant documents to prove that you, your spouse, partner or civil partner are the legal owner and primary driver of your vehicle.


Getting great car insurance is easy with Proper Finance. Simply fill in a few of your details using our online form and you will be contacted by one of our trusted insurance partners. They will assist you every step of the way, helping you get a competitive quote for your vehicle and insured as effectively and quickly as possible.