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You are here: Home > Current Topics > Wanna Argument? > Pay As You Go - On the Roads > How can young people afford car insurance? |
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Wanna Argument?How can young people afford car insurance?It's a good question. A policy for an 18-21 year old can cost hundreds of pounds these days. Is there an alternative? Well, the launch of new pay-as-you-go car insurance policies for young drivers could offer one answer to the problem. It's a bit like the way you pay for a mobile phone: you pay a monthly fee to provide cover for yourself against fire and theft. Then there's a fee charged for off-peak travel on the roads. This is tailored to the individual's personal circumstances, but insurers say it could cost from as little as 6p per mile. On top of this charge, there's a peak rate for travel between 11 p.m. and 6 a.m. This is where it gets expensive, with journeys at these times costing a flat-rate of £1 per mile. But with the first 100 off-peak miles each month being given free, insurers reckon young drivers could save up to a third on their annual car insurance by going pay-as-you-go. |
