The new product is aimed at motorists who drive under 7,000 miles a year (around 140 a week)
Motorists pay a fixed annual cost to cover their car when it’s parked, then pay for any miles they drive each month
All policies include No Claims Bonus protection at no extra cost, with access to driving and car care tools via the company’s app
By Miles, which will launch its first policies and driving app to waiting list members next month, is aimed at motorists that drive infrequently – typically under 7,000 miles a year.
Rather than paying an annual premium, drivers pay a lower fixed amount each year to cover their non-driving risks, such as theft and vandalism, then pay for the rest of their cover monthly, based on how many miles they drive. All policies will include No Claims Bonus protection at no extra cost.
By Miles measures each journey using a matchbox-sized black box device called a Miles Tracker, with drivers able to access the cost of each trip through a smartphone app. In addition to giving By Miles members transparent access to their own spending and driving data, the company’s app and web dashboard offer chat support and a range of additional features that make owning a car easier.
The partnership with By Miles is part of a wider AXA strategy to work alongside companies looking at innovative ways to price risk, while the move enables By Miles to bring its first pay-by-mile product to UK drivers.
Neil Mercier, head of motor, AXA UK commented, “Our partnership with By Miles fits with our focus on finding innovative ways to reach customers – especially those whose needs differ from the wider market. By Miles will benefit motorists who spend less time behind the wheel, allowing them to pay for their insurance based on their usage and take control of what they pay for their cover.”
James Blackham, co-founder and chief executive, By Miles said, “We created By Miles to help UK motorists take back control of their car insurance, combining smarter and fairer pricing with a better and more personalised service. AXA is one of the most experienced insurers in the world, and welcoming them as our underwriting partner will give our members the peace of mind that they’ll be protected by the best if the worst happens.”