A few weeks ago, a company by the name of BY Miles introduced a form of car insurance whose cost is based upon many of the usual factors such as where you live, the make and model of car, your age and driving experience but it also charges you a fixed annual cost plus per mile whereas, with a standard motor insurance policy, you provide the insurer with an estimate of how many miles per annum you are likely to drive in a 12 month period.
A pay per mile car insurance policy may be more suitable for people who do not drive their vehicle much and By Miles suggest that it may be more suitable for someone who does less than 7,000 miles per annum. They only provide fully comprehensive cover.
You pay an initial fixed annual cost that covers you for while the vehicle is left parked at your home for such things as theft and damage and then you pay a monthly premium to cover the cost of the miles you have driven. You are provided with a box that is connected under your dashboard to record the miles you do. The usual factors are taken into account in deciding how much per mile you will pay such as those mentioned above as well as many others.
If you drive more than 150 miles in a day you will not be charged for any extra miles you do above that figure and this applies for up to 10,000 miles per annum in this respect.
Apparently, BY Miles is the first insurer to offer this type of cover in the UK so it will be interesting to see if it proves to be a success and if other companies decide to offer such a scheme. Obviously, if you are looking into car insurance then you may wish to obtain a quote as well as getting quotes from other insurers offering standard motor insurance and compare the cost of both types.