Driving patterns vary significantly across motorists, from daily commuters to occasional or part-time drivers. Some motorists drive to work each morning before parking up their motor for the day and then driving back home in the evening, while others drive much less frequently, and some use the road for specific purposes like delivering goods.

Even though each driver has specific requirements, standard annual insurance policies remain the norm in Ireland, and pay as you go (PAYG) car insurance options are extremely limited. 

Just one provider (Zego) offers PAYG motor insurance in Ireland, specifically for couriers and delivery riders who want to pay for hire and reward cover only when they need it. 

This guide will explain pay-as-you-go motor insurance so that you know the ins and outs of this type of cover before getting a quote.

PAYG motor insurance uses a pay-as-you-go pricing model. Cover starts and charges apply for set time periods.

Instead of paying a set price each month for the duration of your contract (known as ‘bill pay’), with PAYG (or pre-paid) you pay for credit if, and when, it is actually needed.

For PAYG car insurance, you top up your insurance cover by paying per hour rather than an annual premium as is the case with standard insurance.

PAYG cover is primarily designed for drivers who require short-term hire and reward insurance, who either drive only occasionally or have irregular driving patterns, for example those in the delivery sector.

In other markets, PAYG models may suit occasional drivers such as students, retirees or remote workers. However, in Ireland, current availability is primarily limited to delivery and courier drivers.

In Ireland, pay-as-you-go motor insurance usually offers hire and reward cover when you’re actively delivering. It does not replace a standard annual social, domestic, and pleasure (SD&P) policy, so that must stay in place.

Instead of being charged a yearly or monthly fee by your provider, you pay for insurance at your leisure, giving you much more flexibility and potentially reducing costs for drivers who only require hire and reward cover for limited periods.

As with standard cover, the minimum PAYG option to drive on Irish roads is third party only cover, which covers other road users financially if you’re at fault in an accident. 

The level of protection during active delivery periods depends on the provider and policy terms.

Most motorists in Ireland choose regular car insurance policies which charge an annual premium for third party or comprehensive cover. But there are two main benefits of choosing pay-as-you-go cover, which include:

The cost of pay-as-you-go car insurance can vary. Factors that influence the cost of insurance include:

Pay-as-you-go insurance remains extremely limited in Ireland despite an appetite for more flexible options such as per-kilometer and per-hour cover.

Although some providers offer monthly payment options, the only truly pay-as-you-go motor insurance cover currently available is for delivery riders and couriers, offered by Zego.

The main difference between PAYG and standard car insurance is how you pay for cover, and this in turn affects how much you pay.

To take out pay-as-you-go delivery rider insurance in Ireland with Zego, you must meet the following criteria: