In the last year we have seen the arrival of monthly car insurance otherwise known as pay as you go insurance (PAYG) - a policy which you renew on a month by month basis and which can be cancelled as and when you want. It’s ideal for anyone looking for less than 12-months cover or the ability to pay on a month by month basis.

Your pay as you go monthly premium will work out slightly more expensive than an annual policy but this is out weighed by the flexibility and convenience this policy offers.  You would normally opt for this type of policy if you knew you didn't want long term cover, if you are selling your car for example, or only use a car in the winter.

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