Pay As You Go Car Insurance from ByMiles

For most of us our cars will be one of our biggest outgoings. Whether it is car insurance, diesel or car maintence one sure thing is cars cost to run! However there are ways to cut costs including pay as you go car insurance.

When I left teaching to blog full time one of the first things I noticed was how much I saved on diesel. As a teacher driving down the motorway three times a week, the journey to school was costing me £50 per week. Then there was the additional driving associated with taking Erin to nursery school and heading back to school for parents evenings or meetings that I had to attend.

In the past four years, my driving has drastically reduced. I can easily go a couple of days without driving at all. Plus the driving I do is mostly local and town based plus heading to the gym a few times a week. It has made a huge difference to my travel costs.

My car is the bigger family car though and so when we go away we will use my car as it is more roomy for the teenagers. The joy of having three children, impacts on your choice of car!

However, one cost that hasn’t previously been affected is car insurance. If you think about it logically, I am statistically less likely to make a claim as I drive less and for shorter distances. Thankfully ByMiles has recognised this and has developed a new model of pay as you go car insurance to benefit and support those of us who don’t drive long distances.

What is pay-per-mile car insurance? 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 / year. The price is based on the distance you drive, but 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. As well as comprehensive insurance, with ByMiles, you can drive as much as you want, you’d never be charged for more than 150 miles a day or 10,000 miles per year. 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.” This would benefit people like me who are self-employed or work from home. It would also be ideal for stay at home parents who are not wracking up miles on a daily commute.

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 call them. 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 their 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 give you an estimate based on the miles you tell them you think you’ll drive in a year. Importantly, there’s no penalty for driving more or less than your estimated mileage. It’s just pay-per-mile, so if you drive less, then you’ll pay less than the estimate. If you drive more, then you’ll pay more than the estimate.  

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 25 to 76-year-olds and so it’s difficult to get cover outside this age range. Likewise, there are a few restrictions, mostly around people with higher risk profiles e.g. very expensive or high powered cars or people with many claims and speeding tickets.

Find out if pay-per-mile could work for you. To find out more about By Miles and if pay-per-mile car insurance could work for you click this link which will take you to to the website where you can see if it will save you money.

For more posts on saving money and driving check out this post on reducing the cost of learning to drive.