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Guide · By Policy · Pay As You Go

Pay as you go car insurance UK 2026

Pay-as-you-go car insurance is usually cheaper only if you drive under about 7,000 miles a year, pairing a fixed “parked” premium of roughly £150–£300 with a per-mile rate of about 3–8p. A typical 5,000-mile driver pays around £450 a year all-in, while a 12,000-mile driver usually pays more than a standard annual policy. The big 2026 change: market leader By Miles has closed to new customers, leaving Ticker, JURNY and Marmalade to lead the pay-per-mile market. Full cost comparison, providers and the rules below.

2026 providers → Other policy types
Direct Answer

When pay-as-you-go car insurance is cheaper (2026)

Pay-as-you-go (PAYG) — also sold as “pay-per-mile” — splits your premium in two: a fixed annual charge that covers the car against fire, theft and damage while it is parked, plus a per-mile rate of a few pence for every mile you actually drive. Because you only pay for the miles you use, it beats a standard annual policy for genuinely low-mileage drivers. The breakeven sits at roughly 6,000–8,000 miles a year, and the average car in England now covers only about 6,600 miles a year — so a large minority of drivers are realistic candidates.

It is not automatically cheaper. Above about 7,000–8,000 miles the per-mile charges overtake the saving on the fixed premium, and a conventional low-mileage policy wins. PAYG suits second cars, retirees, hybrid and remote workers, city dwellers who mostly use public transport, and young drivers who only borrow the family car occasionally. If you commute long distances or do regular motorway mileage, an annual policy is almost always cheaper. For the wider reasons UK premiums are high in 2026, see our guide on why car insurance is so expensive.

Annual mileageTypical PAYG total*Comparable standard policyCheaper option
2,000 miles£290£430Pay as you go
4,000 miles£410£470Pay as you go
6,000 miles£520£520Line-ball
7,000 miles£560£540Standard (just)
10,000 miles£700£580Standard
15,000 miles£920£640Standard

*Illustrative composite quote sample for a typical 40-year-old comprehensive driver on a group 10–20 car; PAYG total = fixed “parked” premium plus a ~4p per-mile charge. Actual rates vary by age, postcode, car and history. Sources: Car Insurance Expert composite quote sample, ABI 2026 Motor Insurance Premium Tracker and Confused.com Price Index (standard-policy averages), DfT National Travel Survey (average car mileage ~6,600). Refresh: 2026-10-05.

Providers Compared

Who offers pay-per-mile car insurance in the UK (2026)

The pay-per-mile market reshaped in 2026. By Miles — long the market leader — stopped quoting new customers on 26 November 2025 and stopped offering renewal quotes on 6 January 2026, after parent Direct Line Group was acquired by Aviva, which is winding the brand down to focus on Aviva, Direct Line and Churchill. That leaves a smaller field of genuine pay-per-mile insurers:

  • Ticker — app-based pay-per-mile aimed at low-mileage drivers; no miles driven means no mileage charge that month. Mileage is recorded by a plug-in device. Squarely targets the sub-7,000-mile market By Miles served.
  • JURNY — pure pay-as-you-go: a small fixed monthly fee to cover the car while it is parked, plus a per-mile rate (around 10p in worked examples) for miles driven, with daily charges capped (typically 100 miles a day).
  • Marmalade — Pay As You Go — built for new and young drivers aged 17–27 on most family cars; you buy a block of miles (from 500) and top up as needed. Most cost-effective under about 3,500 miles a year.
  • Cuvva — strictly temporary and rolling monthly cover rather than annual pay-per-mile, but its by-the-hour and monthly policies fill the same “only pay when you drive” niche for occasional drivers.
  • Mainstream low-mileage annual policies — Aviva, Admiral, LV= and others will simply quote a cheaper standard premium if you declare a genuinely low annual mileage; for many drivers this is now the simplest pay-as-you-go alternative.

Because the specialist field has narrowed, always compare a true pay-per-mile quote against a standard policy with an accurate low mileage declared — in 2026 the conventional route often matches or beats pay-per-mile now that By Miles is out of the picture. Never under-declare your mileage to cut the price: it can void your policy and invalidate a claim.

Common Questions

Pay as you go car insurance FAQs

It depends almost entirely on mileage. Below roughly 6,000–7,000 miles a year, pay-as-you-go usually beats a standard annual policy because you pay only a small fixed “parked” premium plus a few pence per mile. Above about 7,000–8,000 miles the per-mile charges overtake the saving and a conventional policy is cheaper. For a typical driver, 5,000 miles costs around £450 all-in on pay-per-mile versus roughly £470 on a comparable standard policy. Always compare both, and be honest about your mileage.
Your premium is split in two. A fixed annual charge — often £150–£300 — covers the car against fire, theft, vandalism and damage while it is parked. On top, you pay a per-mile rate of a few pence (typically 3–8p) for every mile you actually drive, billed monthly. Mileage is recorded automatically by a small tracker or plug-in box, or via an app. Most insurers cap daily charges (for example 100–150 miles a day) so a single long trip cannot produce a shock bill.
No — not for new customers. By Miles stopped quoting new customers on 26 November 2025 and stopped offering renewal quotes on 6 January 2026. Its parent, Direct Line Group, was acquired by Aviva in 2025, and Aviva is winding the brand down to refocus on Aviva, Direct Line and Churchill. Existing By Miles policies remain valid until their end date, but anyone shopping for pay-per-mile cover in 2026 needs an alternative such as Ticker, JURNY or Marmalade, or a standard low-mileage policy.
With By Miles closed to new business, the main 2026 options are Ticker (app-based pay-per-mile), JURNY (a fixed monthly parked fee plus a per-mile rate), and Marmalade Pay As You Go for young and new drivers aged 17–27. Cuvva covers the occasional-driver niche with temporary and rolling monthly cover rather than true annual pay-per-mile. Many mainstream insurers — Aviva, Admiral, LV= — will also simply quote a lower standard premium if you declare a genuinely low annual mileage.
The breakeven is generally 6,000–8,000 miles a year. Drive well under that — a second car, a retiree doing 2,000–4,000 miles, or a remote worker — and pay-per-mile usually wins. The average car in England covers about 6,600 miles a year, so a large share of drivers are potential candidates. If you regularly commute or do motorway mileage of 10,000-plus a year, a standard annual policy will almost always be cheaper.
Yes, in most cases. Pay-per-mile insurers record your mileage with a small self-install device plugged into the car's OBD-II port (standard on cars built since the late 1990s, usually under the dashboard), or via a connected app. Unlike young-driver telematics, the device generally tracks mileage rather than scoring your driving style, and there are usually no curfews — though the insurer can use the data to verify journeys and detect fraud.
Not quite. True pay-as-you-go / pay-per-mile is an annual policy with a variable, mileage-based price — you are continuously insured all year. Temporary insurance (from providers like Cuvva or Veygo) covers a car for a fixed short window — an hour, a day, up to about 28 days — and lapses when it ends. Both mean you “only pay when you drive,” but only annual pay-per-mile builds a no-claims discount and keeps you continuously covered.
Yes — you are covered for any legal journey, including motorways and long trips; you simply pay the per-mile rate for the extra miles. To prevent shock bills, most insurers cap the miles they charge for in a single day (commonly 100–150 miles), so an occasional long drive costs less than the raw mileage suggests. If long trips become routine, though, the per-mile charges add up and a standard annual policy usually works out cheaper.

Our sources

  • ABI 2026 Motor Insurance Premium Tracker — standard comprehensive premium averages used in the comparison
  • Confused.com Price Index — 2026 market premium trend and low-mileage pricing
  • DfT National Travel Survey — average car mileage in England (~6,600 miles a year)
  • Insurance Post / Insurance Times — By Miles closure timeline and Aviva wind-down
  • MoneyHelper — how pay-as-you-go cover and per-mile pricing works
  • Ticker, JURNY and Marmalade — provider terms for per-mile rates, daily caps and eligibility
  • Car Insurance Expert composite quote sample — 2026 illustrative pay-per-mile-vs-standard modelling across mileage bands

Reviewed by the Car Insurance Expert editorial team

Reviewed by the Car Insurance Expert editorial team (Motor Policy Analyst). Methodology: pay-per-mile figures are modelled from published provider structures (a fixed “parked” premium plus a per-mile rate) and benchmarked against ABI and Confused.com standard-policy averages; provider availability was verified against 2026 company statements. Contact: editorial@carinsuranceexpert.co.uk.

Last updated: 2026-07-05 · Next scheduled review: 2026-10-05

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