UK insurance company launches first ever pay-per-mile cover

Those who drive less than 7,000 miles per year should benefit


A UK insurance company have launched the first-ever pay-per-mile cover, aimed at drivers who travel less than 7,000 miles per year in their vehicle.

Customers using By Miles will pay a per-mile rate as well as a flat annual fee which covers your vehicle.

Those who drive less than 7,000 miles a year, or around 140 miles in a week, will benefit most from this new kind of cover and save money overall on their car insurance.

A customer will be charged a flat-rate annual fee which covers their vehicle against damage or theft when parked up. They will also be charged a variable rate depending on how much time they spend behind the wheel.

Those who drive less than 7,000 miles per year should benefit

UK insurance company launches first-ever pay-per-mile cover.

A telematics device is plugged into your car’s On-Board Diagnostics (OBD-II) port which allows for the mileage used to be measured. This device is normally positioned under a panel below the steering wheel.

Customers can then track each journey’s mileage use via a smartphone app to see how much they are being charged. Each month the driver will receive a bill based on how far they have driven.

Importantly, drivers will never be charged extra because of how fast they are driving and the company states they will “never share any of your personal driving data with the police unless we are obliged to as a direct result of a court order.”

By Miles launched in 2017 as a start-up business, with backing from Jaguar Land Rover and are now offering UK motorists the chance to take up one of their policies, which are underwritten by AXA.

Other insurance providers do offer customers the chance to take out cover based on low-mileage travel but tend to charge by the day or hour, with some asking their customers to ‘guess’ how much they will use their vehicles.

By Miles basically charge motorists based on exactly how much they drive, however, the cost-per-mile does depend on a number of factors such as no-claims bonus status, age, what vehicle is being insured and whereabouts the vehicle is kept overnight.

Co-founder and CEO of By Miles, James Blackham, described car insurance as “a product that’s barely changed in 30 years,” adding: “Every extra mile you drive adds to the risk of an accident. We think it’s high time that this is reflected in the price infrequent drivers pay.”


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