By Miles launches UK’s first real time pay-as-you-drive car insurance

By Miles launches UK’s first real time pay-as-you-drive car insurance

Congratulations to the By Miles team who have reached an incredible milestone today by launching the UK’s first, flexible pay-as-you-go car insurance that is set to revolutionise the sector. Drivers will be able to buy car insurance in real time on a pay-as-you-go basis with the launch of the new By Miles policy, underwritten by AXA Insurance UK Plc.

By Miles will charge car owners a fixed annual fee to cover their cars while parked, then bill them monthly, based on the number of miles that they actually drive. The product, which measures miles in real time, is being aimed at city dwellers and other drivers who travel under 7,000 miles a year or 140 miles per week in their cars.

The pay-as-you drive insurance, likened to mobile phone billing, could save drivers up to hundreds of pounds each year as the cost of motoring and car insurance continues to climb. Charging for the distance travelled is also a fairer way to charge motorists for insurance, as drivers increasingly mix modes of travel including public transport, bike and walking.

More than 4,000 drivers are currently on the waiting list for the pay-by-mile policy after By Miles ran a successful trial with over a hundred UK drivers last year.

Annual charges will start from £150 a year and driving will be billed from 3p a mile. Using this example, someone driving 4,000 miles a year with this policy would pay £270 for a year’s fully comprehensive cover. The less they drive, the less the car owner would pay. As with traditional motor insurance, rates will vary according to model and age of car, driver’s experience and where car is parked. To get started, customers simply plug the matchbox-sized Miles Tracker device into their car, which will accurately measure the distance travelled and relay it to a smartphone or computer within minutes of a journey being completed. By Miles measures only how far a car is driven, not how it is driven – setting it apart from many existing telematics car insurance products.

James Blackham, co-founder and CEO, said: “Car insurance is a product that’s barely changed in 30 years. We want to make car insurance fairer, and the whole experience of owning a car much easier. 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. I’ll know we’re getting somewhere when one of our customers walks into the pub and tells their friends ‘You know, I really love my car insurance’.”

Callum Rimmer, co-founder and CTO, said: “We’re determined to create a more relevant product for customers, as the way we drive changes. While our policies work well for low mileage drivers today, they can be adapted as car use evolves, with the rise of autonomous or shared vehicles. We want By Miles to be the dominant insurer in the brave new world of motoring that’s just on the horizon.”

To find out more or get a quote at


Sam Clifton
Venture Capital


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