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Mar 16

What is pay-per-mile car insurance?

Reading Time: 3 mins

Pay-per-mile is a new way to pay for your car insurance and is designed for those who drive less than 7,000 miles a year. The price is based on the distance you drive, not the way you drive – so there’s no driver scoring and no curfews.

You pay a one-off annual fee to cover your car while it’s parked, after that you just pay for the miles you drive. Your mileage is automatically charged at the end of each month. By Miles offers fully comprehensive car insurance where you can drive as much as you want. You’ll never be charged for more than 150 miles a day. So if you drive 200 miles in a day, you’d only be charged for 150 miles.

Is it cheaper?

While all quotes will depend on your individual circumstances, according to James Blackham, one of the By Miles’ co-founders, motorists are paying too much because traditional car insurance policies don’t accurately reflect the number of miles driven.

“Those who don’t drive as much are being treated unfairly. They’re being charged more to subsidise the insurance of higher mileage drivers.

“Pay-by-mile insurance means that people who drive less are rewarded, and rightfully pay less.”


By Miles use a Miles Tracker

You’ll be sent a Miles Tracker in the post to measure the miles you drive. It’s about the size of a small matchbox. It’s also quick and easy to plug into your car yourself, so you won’t need an engineer to fit it. If you have any problems plugging it in you can just contact By Miles.

You’ll be fully covered from your start date, and there’s no charge for the miles you drive before the Miles Tracker arrives.

The Miles Tracker also powers a range of features in the By Miles smartphone app, like theft tracking and scanning your car for faults.

Also, unless they get a court order, By Miles won’t report any speeding to the police!


The Quote is an Estimate

When you get a quote, By Miles gives you a price based on your estimated annual mileage.

Importantly, there’s no penalty for driving more or less than your estimated mileage.

It’s just pay-per-mile. Drive as much or as little as you like. If you drive a little more than you guessed, you’ll pay a little more. If you drive less, you’ll pay less.


What’s the catch?

A By Miles policy won’t suit everyone. If you drive more than 7,000 miles a year, you can probably find cheaper insurance elsewhere.

Also, policies are made for 17 to 80 year olds, so you can’t get cover if you’re outside this age range. Likewise there are a few other restrictions, mostly around people with higher risk profiles – e.g. very expensive or high-powered cars – or people with a number of claims and speeding tickets.


Get £20 Off Your Pay-By-Mile Car Insurance Policy 


Get a quick idea of your quote in under a minute and see if you could save, as Money Magpie readers get £20 of free miles when they start their policy.* Just use the Quick Quote calculator above to get an estimated price for your car insurance.


*The not-so-small print: You must get a Quick Quote using the calculator above. Quick Quotes are an estimate based on very limited information so we need to make a few guesses e.g. your policy will start in two weeks and you haven’t had any claims or driving convictions. Your price could go up or down after you’ve given your full details. Policies are available for drivers aged between 17-80. Free miles credit is not transferable, refundable or convertible into cash. Offer not available if you get a quote or purchase a policy after using a comparison site. This offer is not valid when used with any other offer. Read our terms at bymiles.co.uk/terms-of-business. By Miles Ltd is authorised and regulated by the Financial Conduct Authority (FCA) number 773046. This offer is valid for all purchases before 23:59, 31 May 2022. 


Disclaimer: This is a paid article from ByMiles.

MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. 



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