Buy Car Insurance, Hour by Hour

There appears to be a gap in the car insurance market, but one company are hoping to successfully launch a new service to meet the needs of drivers.

A Scottish startup company called Cuvva have decided to offer something called pay-as-you-go car insurance, which basically offers people the chance to insure their car on an hourly basis if they want.

It definitely sounds like an interesting plan if you ask me, and when you consider that traditional car insurance has been getting really expensive lately I can understand why this might interest the UK public.

For example, take someone who owns a car but during the week commutes to work by train. They only take the car out on weekends, maybe to go shopping or for a picnic. In this type of scenario I think pay-as-you-go car insurance could be a winner, as it would ultimately save the driver a lot of money.

Car Insurance Subscriptions

So how exactly will hourly car insurance work? Will it just be like topping up your mobile phone? Well, sort of. What I’m hearing from insiders within the industry is that Cuvva are going to be offering a monthly subscription plan between £10 and £30 that gives you basic cover, and then when you want more car insurance you simply “top up” through their App and you are good to go.

It certainly sounds like a good idea, but how many people will really benefit from it? In my opinion it remains to be seen, because while there definitely is a group of people out there who only use their car maybe an hour or two a week, the vast majority use it more, which ultimately means pay-as-you-go car insurance probably won’t be the best option for most people.

Instead, what you want to do is visit a car insurance comparison website and get some quotes from all of the insurance companies out there. You can then be sure you are getting the best deal possible, which I really do think will work out cheaper for most people rather than paying for car insurance by the hour.

The 4,000 Miles Per Year Target

Let’s wait to see what happens with this one though. The company behind it, Cuvva, are saying that topping up your car insurance will start from £1.20 an hour and is targeted towards people that drive less than 4000 miles a year.

I think you will have to get your calculator out and do some numbers to discover which is the best option for you, although it’s worth noting that this hourly car insurance service is not launched until April.

It’s probably going to be a year or two before they get things running smoothly and then by that time they should have a better idea of whether or not pay-as-you-go car insurance is a winner or not.

In the meantime, you will have to get car insurance the usual way, and the best way to start is with a comparison website.

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