How PAYD insurance can help reduce the amount we all drive and ultimately lower our carbon footprint

Pay As You Drive (PAYD) or Usage Based Insurance (UBI) allows drivers to take control of their insurance and pay for the mileage they do rather than a set annual fee for their policy.


The coronavirus pandemic has caused a shift in how we drive, and many drivers have said they will not be driving as many miles as they did pre-COVID. This new normal has seen a new demand for alternative insurance models to replace conventional policies. 


These models are data led solutions that allow drivers to control costs based on how much they decide to use the car. By choosing the annual mileage drivers can reduce costs significantly but will need to consciously manage and monitor their mileage to not add additional costs. Once a driver commits to a PAYD or UBI policy it does have a significant effect on their driving habits and thus many drivers learn how to drive less or combine journeys.


Along with keeping your insurance costs low it also reduces other costs such as servicing and wear and tear. This new trend to drive less also has an added benefit on the environment as is reduces the average carbon footprint caused by drivers in the UK.


PAYD insurance is very similar to normal car insurance with a discount for driving less and most are comprehensive policies, so will include all the usual cover you would expect.


Different insurers will measure your distance driven in different ways but most will use telematics to manage the data and allow drivers to monitor how much mileage they are doing on weekly or monthly basis


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