If restaurants worked like traditional car insurers, then you’d pay the same for champagne and caviar as you would for fish and chips and fizzy water.

Traditional car insurance, where you have to pay up-front for a minimum of 6,000 miles insurance cover AND subsidise bad drivers’ habits, behaviour, accidents and claims, should not work as a commercial concept. If the same commercial principle was applied to, say, restaurants, then it would mean everybody going into a restaurant pays the same up front before they order, but while you may just want fish and chips and a water, you’d be paying the same as somebody else who orders champagne, lobster and caviar. That’s how traditional car insurance works because insurers lump together what they perceive as being similar people living in the same postcode – regardless of whether they drive 3,000 miles a year, safely, in low-risk environments, or 20,000 miles a year dangerously and in high-risk environments. Pay-as-you-drive car insurance from the likes of Coverbox means you are charged as an individual according to the times and places you drive, and the mileage you cover. Coverbox allows you to monitor your journeys and driving habits via a “personal dashboard” on your PC, computer, smartphone, laptop or tablet. By seeing where and when you drive helps you change those habits, turn multiple journeys into one journey, change the time of your regular journeys away from high-risk peak rush-hour driving times to low-risk driving times, thereby bringing down the cost per mile of car insurance, and lowering the risk of being involved in an accident or claim.

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