Wednesday, 28 December 2011

Is Curfew car insurance more restrictive than pay-as-you-drive?

So What’s The Big Deal With Pay-As-You-Go Car Insurance?

We've recently been hearing a lot of noise around pay-as-you-go young drivers insurance, however, just think about it for a minute - you actually have to pay extra if you want to drive more than your allocated 6,000 or so miles.

For some young drivers this might appear appealing but let's put this into perspective for a minute.
From the outset pay-as-you-go car insurance appears relatively cheap... but that adds up over time, especially if you're working a job that requires you to drive a bit more. So what starts out at around £2,000 for a young drivers car insurance policy could turn out to be around £4,000 at the end of the year after you've spent out more money just to get more miles... just something to think about.

The next obvious telematics car insurance policy you could consider is what's known as "curfew car insurance."

However, calling it curfew insurance is probably quite misleading. The like of iKube, for instance, doesn’t think of itself as "curfew car insurance" - it prefers to think of itself as "safer driving insurance."

Unlike pay-as-you-go car insurance, iKube does not charge you by the mile and like any car insurance you can earn your own no claims bonus (NCB) as well as get breakdown cover into the package.* Sounding pretty good eh?

The only thing iKube really asks is that the young driver does not drive during the "red hours" - the time between 11pm at night to 5am in the morning. Is that such a big thing? Just think about it for a minute - if you're going out on the razz with a couple of mates you're hardly going to be driving are you?

Besides - iKube doesn't tell you you can't go out driving during the red hours - it simply asks that you don't. iKube wants to keep you safe - simple as that.

*Breakdown is a compulsory policy - charge of £30 applies.