Cuvva’s Pay-As-You-Go Insurance: A New Option

February 23rd, 2017
Cuvva’s Pay-As-You-Go Insurance: A New Option


One of the best things for occasional drivers is that a pay-as-you-go insurance policy will save drivers hundreds of pounds as they don’t have to buy a standard insurance policy. The pay-as-you-go policy is suitable for all those who drive the car on rare occasions and allows them to buy a monthly subscription which can be topped up as and when you drive the extra hours.

The UK’s first pay-as-you-go policy was launched by a fresh car insurance app offered by pay-as-you-drive service provider Cuvva. The company says that it keeps the drivers in control of their insurance by charging monthly subscription of £10-£30 and a nominal fee starting with £1.20 an hour as top up charges. The plan also guards the vehicle when it’s not on the roads i.e. when parked in a garage or public parking.

The Edinburgh-based insurer said that the insurance is most suitable for young drivers who pay nearly £2,122 a year as motor insurance costs. Most of them have driven less than 4,000 miles a year but are bound to pay such high insurance costs. Therefore, the policy would help them minimise insurance premiums to the lowest possible amount.

The company has been famous for offering by-the-hour insurance, which are best suited for people who may not own a car and drive vehicles that are owned by friends and family. However, the latest pay-as-you-go insurance would resolve the problem faced by around six million UK citizens, who have to pay higher insurance even while they cover lower mileage.

According to the rules, the policy is for every driver, whether you drive alone or share it with your friends or family. Also, the cover is for one vehicle only and you cannot use it for two or more vehicles. In case, you want to share a car then both the drivers would need to buy the subscription. The best part is that you will also get a fully transferable no-claims discount by the end of the yearly subscription.

You can cancel the subscription without any costs but beware as the DVLA can fine you at the end of the 28 days of the subscription period in the following cases:

  • If the vehicle is not insured by other insurer
  • Declared off the road
  • If is not declared Statutory Off Road Notification

Therefore, the pay-as-you-go has its own merits as well as demerits. However, it is a boon for infrequent drivers and would save them much of the cost spent on standard car insurance policy. Think about it!

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