Pay-per-mile car insurance startup By Miles has closed a seed funding round of £350,000, featuring investment from Jaguar Land Rover subsidiary InMotion Ventures, Hambro Perks and a number of angel investors.
The London based insurtech startup is launching a new kind of pay-per-mile insurance policy later this year, along with a smartphone app that will make owning a car simpler and more cost-effective for lower mileage drivers.
By Miles (formerly Just Miles) was founded by James Blackham and Callum Rimmer as a way to temper the rapidly rising cost of car insurance premiums. They saw a problem with traditional insurance models as anyone driving less than the national average of 7,000 miles effectively subsidises the premiums of higher mileage drivers.
Co-founder and CEO, Blackham, said:
“We didn’t think it was fair for drivers to pay full price for insurance when they weren’t using their car, so we’ve designed real-time insurance that treats customers as individuals and fits the way they drive. We’re already trialling the product with a panel of private beta testers from our waiting list, and this support from Hambro Perks and InMotion will allow us to get closer to our full launch.”
With insurance premium tax increasing to 12%, the average cost of a UK car insurance policy is set to break the £800 mark this month. By Miles policies are aimed at people living in cities, driving mostly at the weekend or only driving short distances each day, offering a more flexible option that aligns better with their personal driving habits.
Aside from a monthly subscription fee, By Miles uses telematics to track the distance a car travels and only charges customers for the miles they drive. Alongside a range of handy in-app tools, drivers can get an estimate of how much a journey will cost them in advance and access itemised receipts on their smartphone in real-time.
Blackham added: “We’re not just trying to make car insurance fairer and more transparent, we’re also trying to give drivers the power to make better decisions. If a customer sees the cost of a small journey is going to push them over their monthly budget, then they can make the choice to car share, get public transport or even cycle."
James Nettleton, Head of Seed Programme at Jaguar Land Rover’s InMotion Ventures, said: “There are some really talented teams working on solving problems in the car insurance space, and we’re excited to get the chance to work with one of the best. By Miles is bringing a radical new level of flexibility and transparency to a product that has been consumed in more or less the same way for decades. We’ve been really impressed by the work they’ve done to date, and we’re looking forward to supporting their next steps.”
Callum Rimmer, co-founder and CTO of By Miles explained:
“Our insurance is perfect for connected and automated vehicles because the driving data we need is already there – it’s just a case of our platform converting that data into smarter pricing for drivers. While we’re focusing on solving insurance for lower mileage drivers now, there’s no reason why our technology couldn’t be repackaged for higher mileage policies too. In the future, we may also look into offering fleet insurance or private hire insurance by the mile.”