Could pay-as-you-go insurance save you money?

A wave of new apps is offering cheap insurance on demand for those who want to avoid up-front premiums and long-term contracts.

A wave of new apps is offering cheap insurance on demand for those who want to avoid up-front premiums and long-term contracts, says Anna Temkin in The Times. Axa Insurance, for instance, has teamed up with Trov, a Silicon Valley start-up, to insure electronic items. The app, which is geared towards students or people going on a business trip, asks you to upload a photograph or receipt for the item onto your phone.

Trov will then generate two insurance quotes one daily rate and one monthly rate based on your age, postcode and the value of the item. You can turn the insurance on or off at will and the coverage is worldwide. Back Me Up, another provider, will insure up to three items, plus your phone screen, keys and travel, for £15 a month with no annual contract.

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