The majority of car insurance providers base your premium on a number of factors with one of them being an estimate of how many miles you believe you will travel whilst at the wheel of your car in a 12-month period. For instance, if you estimate that you will do say 30,000 miles per annum then it is possible that you will be charged more for your cover than if you only drove 5,000 miles per annum.
Well, a company by the name of By Miles Ltd is shortly to start offering fully comprehensive car insurance to motorists the cost of which is going to be partly based upon the specific number of miles you drive each year. It is known as “pay per mile car insurance”.
By Miles Ltd will charge you a premium to cover your car whilst it is parked and cover you for the likes of it being stolen or damaged by another motorist who was driving past your vehicle whilst it was parked. In addition you will be charged for the specific number of miles you travel in your car.
The insurance company will request that you have a tracker placed under the dashboard in your car that will measure how many miles you travel. You will be charged on a monthly basis so no two months may necessarily be the same cost for your motor insurance.
It is hoped that the cost of such cover will be less than you would pay for the traditional type of motor insurance. It will be interesting to monitor how successful this product is with consumers many of whom have had to face large increases in the cost of their car insurance over the last year or so. Presumably, there will be a lot of insurers that are going to monitor how successful By Miles Ltd is.