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, 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.

And for drivers there is Cuvva, says Rob Hull on ThisIsMoney.co.uk. Cuvva, which launched in 2015, was the first tech platform to offer insurance for drivers who want to borrow a friend or relative's car. It is now extending its offer to occasional drivers. A monthly premium of £10-£30 covers your car when it's parked on your driveway, and you pay an additional hourly fee starting at £1.20 when you want to drive.

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The app is aimed at "young city dwellers" who must traditionally pay large premiums with standard car insurance policies, despite spending little time on the road. The subscription can be cancelled at any time, although the car must legally be insured by another provider or declared off-road at the end of the 28-day subscription period. Cuvva says its policy could save drivers up to 70% on their annual premiums, which for a 17-year-old paying an average of £2,122 is nearly £1,500.