Insurer launches pay as you go policy for young drivers who struggle to foot the bill for car insurance
- The ‘flow’ policy by insurer LV= charges a fixed price for the first month
- Then a guaranteed maximum charge that will be levied for the next three months
- It is an online-only offer that can be cancelled at any time
Young motorists struggling to foot the bill for their car insurance can now sign up to a pay-per-month deal with LV=.
The fully comprehensive policy aims to cut out the paperwork by asking customers to answer 14 questions online, including details of motoring history, and then to send in a photo of their driving licence.
The ‘flow’ policy charges a fixed price for the first month and a guaranteed maximum charge that will be levied for the following three months.Yougn
Young drivers’ insurance: The ‘flow’ policy can be cancelled at any time
For example, it could ask for an initial £110 followed by a pledge you will be charged no more than £100 a month for the next three months.
The customer is emailed seven days before the start of each month telling them the price to be paid. It is an online-only offer that can be cancelled at any time.
The offer does not include the need to fix a ‘black box’ telematics gadget in the car that would monitor the speed and driving habits of the motorist.
Older drivers can also take advantage of the deal. Customers are also given the option of adding additional drivers or cars to their policy – for a fee.
The average cost of car insurance for drivers in their 20s is £1,035, according to data collector Statista. Teenagers pay even more.
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