Home  >  FAQs  >  What is Pay-As-You-Go Car Insurance?

What is Pay-As-You-Go Car Insurance?


David Krug

Get a Quote

Ready to save hundreds on your car insurance?

When it comes to car insurance, getting the best coverage for the lowest cost is key. Traditional car insurance policies can be expensive for those who don’t use their cars often, and for those who do, it can be hard to keep up with monthly payments. Pay-as-you-go car insurance provides an alternative solution for drivers who don’t have the time, money, or need for a traditional policy.

Pay-as-you-go car insurance is a type of car insurance that allows drivers to pay as they go. This type of insurance is based on the amount of miles you drive. Users are only charged for the exact amount of miles they drive, and they don’t have to worry about long-term contracts or cancellation fees.

How Does Pay-As-You-Go Insurance Work?

Pay-as-you-go car insurance works by tracking your mileage and charging you based on the amount of miles you drive. Most companies provide a small device or app that tracks your mileage and sends it to the insurance company. The device or app you use will depend on the insurance provider and the type of car you own.

Once your mileage has been tracked, the insurance company will charge you based on the amount of miles you drove. This fee will vary based on the company and your individual rate, but generally speaking, the less you drive the less you pay.

Ready to get started?

We’ve got you covered.

Benefits of Pay-As-You-Go Insurance

Pay-as-you-go car insurance offers several benefits to drivers, including:

  • Cost savings – Since you are only paying for the miles you drive, your insurance costs will be lower than with a traditional policy.
  • Flexibility – With pay-as-you-go car insurance, you don’t have to worry about long-term contracts or cancellation fees. You can cancel at any time without penalty and adjust your coverage as needed.
  • Convenience – Pay-as-you-go car insurance eliminates the need for monthly payments, making it a more convenient option for drivers who don’t have the time or money for a traditional policy.

Bring on the savings!

We’ve done the research and have the tools to find you the best coverage for you. Let us help you discover your perfect policy.

Still paying too much?

Don't leave before you see how much we can help you save.