The latest product extends its suite of connected motor propositions that includes solutions for novice drivers, van drivers and electric vehicles

Telematics motor insurtech Ticker has launched an on-demand pay-per-mile product for low mileage drivers as the cost of living crisis rages.

The product is Ticker’s latest in a suite of connected motor propositions that includes solutions for novice drivers, van drivers and electric vehicles.

Richard King, founder and chief executive of Ticker, said: “We’re thrilled to be introducing pay-per-mile into our expanding suite of connected motor products.

”It’s a case of right product, right time – but it’s difficult to imagine a future where every insurer doesn’t have a usage-based product in its offering.”

Ticker has been expanding its product choice for consumers, with products for convicted drivers and people new to the UK in the pipeline. 

Meanwhile, three more niche propositions are being planned for 2023 with the insurtech forecasting over £100m of premium for the coming year.

Right product, right time

Ticker said its pay-per-mile insurance policy had been developed to answer the needs of today’s insurance consumers – better pricing for lower mileage drivers, clearer sight of day-to-day journey costs and greater control over outgoings.

The demand for flexibility in insurance pricing has grown as household bills grow and the cost of living crisis continues.

For example, last month (30 September 2022) NerdWallet found that 29% of surveyed consumers had stopped paying for insurance cover over the last year to reduce costs. 

Annual mileage has also been trending down since the pandemic – Department for Transport data indicates that the average for a UK driver is now well below 7,000 miles per year.

Meanwhile, more people are working from home and the cost of fuel is rising, deterring many motorists from driving.

King added: “We’re very confident this product will succeed, for several reasons – our award-winning digital ecosystem and customer experience, very high levels of pricing sophistication resulting in market-leading loss ratio performance and our use of machine learning and artificial intelligence across many aspects of the business.”