Is Pay-As-You-Go Car Insurance Worth It? | Rooster
If you don’t drive often, a traditional annual policy might not be the most cost-effective option. That’s where pay-as-you-go car insurance comes in. But is it really cheaper, and does it offer enough protection? Let’s break down the pros and cons.
What Is Pay-As-You-Go Car Insurance?
Unlike standard car insurance, which requires an annual or monthly payment, pay-as-you-go car insurance lets you pay only for the miles you drive. Insurers usually track your mileage using a mobile app or a small telematics device installed in your car.
How Does It Work?
You pay a small monthly or upfront base fee for essential cover.
Your insurer charges you based on the number of miles you drive.
Your usage is tracked via a telematics system (app or black box).
If you don’t drive, you don’t pay extra—keeping costs low for low-mileage drivers.
Pros of Pay-As-You-Go Insurance
Cheaper for infrequent drivers – Ideal if you only drive occasionally.
Flexible payments – No need for an expensive annual policy.
Eco-friendly incentive – Encourages less driving, which is better for the environment.
Comprehensive cover – Some policies still offer full protection, despite lower costs.
Cons of Pay-As-You-Go Insurance
Not ideal for regular drivers – Costs could add up if you drive frequently.
Requires mileage tracking – Some drivers may not want a black box or app tracking their trips.
Limited provider options – Fewer insurers offer this type of cover.
Is It Worth It?
Pay-as-you-go car insurance is a great option if you:
Drive fewer than 5,000 miles per year
Want a cost-effective alternative to an annual policy
Don’t mind using a telematics app or black box
If you drive regularly, a standard annual policy might still be more affordable in the long run.
Get the Right Cover with Rooster
Looking for flexible, affordable car insurance? Rooster searches over 100 providers to find you the cheapest quote—even if it’s not with us. Like a comparison site, but better.
Download the Rooster app today and find the best insurance for your driving needs!
