What if you have a car, but rarely drive it? Maybe you cycle to work or work from home… or perhaps you prefer public transport most of the time and just get behind the wheel on rare, special occasions.
If so, you’re exactly the type of motorist targeted by a new partnership between AXA and By Miles. The two firms have this morning revealed they will tie-up on the UK’s first real time pay-by-mile car insurance policy.
By Miles offers a product aimed at drivers who typically travel less than 7,000 miles a year – it will launch its first policies and driving app to waiting list members next month. The idea is that rather than paying an annual premium, drivers pay a lower fixed amount to cover non-driving risks – like vandalism and theft – but then pay the rest of the cover monthly based around miles driven.
Each journey is measured using a blackbox device known as a Miles Tracker – and drivers can access the cost of each trip by using a smartphone app. Now, AXA has hooked up with the firm to underwrite its motor insurance policies.
“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,” said Neil Mercier, head of motor at AXA UK. “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.”
“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,” added James Blackham, co-founder and chief executive of By Miles. “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.”
Article is care of www.insurancebusinessmag.com