New disruptor will target those who motor less than 7,000 miles 

The full roll out of pay-as-you-drive car insurance from AXA-backed insurtech By Miles launched today.

Targeting those that drive less than 7,000 miles in a year, its founders claim it is the first to sell car insurance at a price dependent on the miles driven in real time.

But it reflects what the boss of pay-as-you-work insurtech Zego, Harry Franks, told Insurance Times this week that this is the “era of hyper-personalisation”, and that traditional insurers and brokers must adapt to the more flexible lifestyles of modern customers.

That AXA decided to partner up with By Miles in April is a sign that the industry is aware of this more personalised customer demand.

Co-founder and chief executive of By Miles James Blackham says in response to the changing ways in which people are living their lives it is fairer to charge people for their insurance based on their need and the subsequent risk they are incurring.


“Car insurance is a product that’s barely changed in 30 years,” he added. “Every extra mile you drive adds to the risk of an accident. 

“We think it’s high time that this is reflected in the price infrequent drivers pay.”

And fellow co-founder and chief technology officer James Blackham added: “We’re determined to create a more relevant product for customers, as the way we drive changes. 

“While our policies work well for low mileage drivers today, they can be adapted as car use evolves, with the rise of autonomous or shared vehicles. 

“We want By Miles to be the dominant insurer in the brave new world of motoring that’s just on the horizon.”

The market for such an offering is apparent.

It is estimated half of the 30m cars on UK roads travel fewer than 7,000 miles a year. 

And more than 4,000 drivers are currently on the waiting list for the pay-by-mile policy after By Miles ran a successful trial with over a hundred UK drivers last year.

Annual charges will start from £150 a year and driving will be billed from 3p a mile. Someone driving 4,000 miles a year with this policy would, therefore, pay £270 for a year’s fully comprehensive cover.


By Miles insurance is underwritten by AXA Insurance and has received funding from InMotion Ventures, Jaguar Land Rover’s innovation fund. 

Insurtech Gateway, the insurance-focussed incubator set up by investor Hambro Perks and Lumleys, is also an early investor.

Robert Lumley, director at InsurTech Gateway, said: “It’s clear that paying for insurance by the mile really addresses customer needs and we’re delighted to be supporting By Miles, alongside other visionary investors. 

“Telematics that tracks behaviour naturally benefits the insurer, but paying by mile naturally benefits the customer. 

“We hope that getting this simple but revolutionary idea out of the starting blocks, in the face of an industry that is often resistant to change, will lead to other product and service innovations from By Miles. 

“Driving and car ownership is changing rapidly and the insurance industry as we know it will soon get left behind.”

Customers purchase the policy online and plug a matchbox-sized miles tracker device into their car. 

This measures the distance travelled and relays it to a smartphone or computer within minutes of a journey being completed.

No information on how the car is driven is recorded.