Over the years, insurers have been forced to introduce more flexible insurance solutions to meet the demands of the market and take into account consumers that require insurance cover for periods of less than a year.
 
One product which is fairly new to the market is pay monthly car insurance, also know as pay as you go car insurance. Marketed as a flexible alternative to annual insurance, pay monthly policies are ideal for customers looking to insure their car for less than a year. Policies are renewed monthly (normally automatically) and allow you to keep your car covered without needing to commit to a years insurance cover.
 
This product has proved popular with customers in the process of selling a car or for individuals requiring cover for a limited number of months, for example if they are planning an extended trip abroad later in the year. Although pay as you go car insurance is flexible and easy to arrange, you do pay slightly more per month for this type of policy than if you were to take out an annual policy. For this reason, pay as you go policies should only be viewed as a short term solution and if your circumstances do change in the future, it is certainly worth looking into the cost of taking out an annual policy instead.
 
Pay monthly car insurance should not be confused with annual car insurancewhere the consumer has opted to pay for the premium on a monthly installment basis.
 
Another alternative to pay-as-you go car insurance is temporary car insurance which provides cover from 1-28 days. Temporary cover is most commonly bought by consumers to provide cover for a weekend rentals, to allow them to insure a friend on their car so they can share the driving over a long journey and as a short term solution, while their annual cover is arranged. Temporary car insurance can prove quite costly if taken out for an extended period of time.

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Specialist Car Insurance |  Monthly Car Insurance (PAYG)