Now, we’re all about saving money on your car insurance. It’s kind of our thing, in case you hadn’t noticed. The RAC seems to have taken this a whole step further, with the launch of their new car insurance scheme: ‘Pay by Mile’. If you’re a driver who has found themselves driving less than 6,000 miles per year, or you generally don’t use your vehicle much anyway, this new car insurance policy could be exactly what you have been looking for (or driving for?).
It works like this: RAC keeps track of how many miles you’ve covered through an app on your phone, with an additional request for you to place a ‘Drive Tag’ on the windscreen of your car where it is clearly visible. Depending on how many miles you’ve driven, you’ll then receive a monthly bill – of only 4p per mile. The best part is, it’s a monthly contract, so you can actually cancel whenever you like, and you also won’t be charged any additional fees if you need to amend your policy. Unlike a black box insurance policy that rewards good driving, the incredibly flexible RAC ‘Pay By Mile’ policy has no way of assessing your driving – not that we’re encouraging you to go out and perform wheelies!
You will, however, have to make a one-time payment of £50 to activate the scheme, and this is on top of your monthly payments. These payments are arguably worthwhile, as they offer cover for cars which is fully comprehensive – whether you’re in the middle of making a journey, or if your motor is still parked in your drive. There is a parked premium that starts from £14 each month, but of course, this price will differ based on where your vehicle is parked, just like a normal car insurance policy. So, how can you tell if this will work for you? Well, add £14 per month, to your average monthly mileage. I don’t know about you, but have you ever struggled to estimate how your average annual mileage? Especially if you only use your car for social purposes.
Does this sound too good to be true? Or is this scheme not relevant to you? We predict several of these policies becoming popular, especially during the coronavirus period. Either way, you can depend on us, as we’ve got you covered with the cheapest car insurance quotes around. RAC or otherwise.