So car insurance in the UK is getting more expensive, that’s a fact, which means some companies have started to innovate ways to make it cheaper.
Enter pay per mile car insurance, a new concept by startup company “By Miles” who plan to revolutionise the way many people in the UK insure their car.
Supermarket or Picnic? Pay Per Mile
Why pay over £800 for a 12 month policy…or even £8000…when you could simply pay for what you use? It sounds perfect for people who only use the car now and again, maybe to nip to the supermarket or go for a picnic on a Sunday.
The concept isn’t exactly new though. Regular readers of this blog will remember how I reported on something called Pay As You Go Car Insurance, and although I think the idea in theory is a good one, the main problem is the fact it might just be too “niche.”
In other words, there are not enough people out there who only use their car now and again, because the vast majority are regular road users who would benefit most from a normal car insurance policy.
Pay Per Mile vs Pay As You Go
That is why I’m not so sure about both Pay As You Go Car Insurance and Pay Per Mile Car Insurance. Sure, they will get some customers, but will it be enough to make investors back their money? I don’t think so.
There are many who disagree with me though, as noted by the fact that “By Miles” have just got a cool £350,000 worth of funding to help them launch the product.
So obviously many investors out there do have confidence in Pay Per Mile Car Insurance, and if the concept is approved by the Financial Conduct Authority then you can expect to see even more investment.
Car Insurance App
One of the main focus points of the product is the car insurance app that “By Miles” will soon be launching so customers can download it to their smartphones.
This makes it easier to keep track of the miles driven, and will also feature a calculator tool that aims to calculate the cost of insuring a drive to the supermarket, for example.
The founder of “By Miles” seems to be enthusiastic at the moment, recently saying, “we didn’t think it was fair for drivers to pay full price for insurance when they were not using their car, so we’ve designed real-time insurance that treats customers as individuals and fits the way they drive.”
It certainly all sounds very good, and like I said, I’m sure they will get a few customers, I just don’t think it will ever take off in a big way.
Most people, would benefit more from using a car insurance comparison website when it comes time to renew their policy, where they can find the best possible quote for 12 months of cover.
You Are in The Right Place
Make it easy on yourself and forget about Pay Per Mile Car Insurance. Stick with the traditional route right here at Cheap Car Insurance and save yourself a packet.