Pay-as-you-go car insurance means you never pay more than you need.

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  • How does By Miles car insurance work?
  • Who needs pay-by-mile car insurance?
  • Is car insurance you pay for per mile worth it?

Jump to section

  • How does By Miles car insurance work?
  • Who needs pay-by-mile car insurance?
  • Is car insurance you pay for per mile worth it?

What is By Miles car insurance?

By Miles is a car insurance provider that offers pay-as-you-go car cover. With this type of policy, you only pay for the miles you drive. So, the less you drive, the less you’ll pay for insurance. 

By Miles was one of the first providers to offer this type of insurance in the UK although other insurers are now following.

 

By Miles FAQs

How does By Miles car insurance work?

If you take out a policy with By Miles, you’ll pay a fixed annual fee to insure your car when it’s not being driven. You’ll then only pay for the miles you actually drive.

To calculate your mileage, By Miles will send you a tracker which you’ll need to plug into your car’s dashboard (they’ll send you instructions). This will record the miles you do, which you’ll then be billed for each month. 

Crucially, the tracker provided will only track your mileage, it doesn’t monitor your driving as a telematics device would. 

If you have a new car, you might not need to install a tracker as the By Miles app should be able to connect directly to its mileometer.  

 

Who needs pay-by-mile car insurance?

Pay-as-you-go type policies are ideal if you only drive a limited number of miles each year. 

If you drive fewer miles than the UK average (7,400 miles), you could benefit from a pay-by-mile policy. This might well be the case if you only drive very occasionally for emergencies or running errands locally. It could also apply if you live with your parents and occasionally borrow their car.

 

What does car insurance by the mile cover?

Pay-as-you-go policies provide the same levels of cover offered by standard car insurance:

  • Third party only – covers compensation costs if someone is injured or has their property damaged because of an accident you’re involved in. This level of cover doesn’t pay to repair your car. It’s also the minimum you can have by law.
  • Third party, fire and theft – includes third party only cover and will cover the cost if your car is stolen or damaged by fire.
  • Comprehensive cover – includes third party, fire and theft and will also cover the cost of damage done to your car, even if an accident is deemed your fault. 

It’s worth bearing in mind that most pay-as-you-go policies (including By Miles policies) provide comprehensive cover as standard. 

Like other types of car insurance, you’ll also be able to add other features to your policy, which could include:

  • Breakdown cover
  • Windscreen cover
  • Courtesy car
  • No claims bonus protection

If you’re keen to add value to your policy, it’s worth comparing what’s on offer in the first instance. Some insurers may already include a range of features that you need to pay for with others. For example, By Miles policies will protect your no claims bonus as standard. 

 

Is pay-as-you-go insurance the same as short-term or temporary car cover?

No, pay-as-you-go insurance isn’t the same as short-term or temporary car cover. Although you could say there are similarities in the sense that all these policies cater for drivers covering a limited number of miles.

Short-term and temp cover only covers a specific and limited period of time – for example, one day, a week or six months. Whereas pay-as-you-go insurance is still designed to give you annual cover but only charges you for the miles you actually drive. 

 

Is car insurance you pay for, per mile, worth it?

When you consider policies, take a minute to check exclusions and limitations. Almost all policies come with restrictions but specialist policies like pay-as-you-go cover might have more conditions than standard insurance – for example:

  • Age restrictions – eligibility may be based on age. For instance, By Miles only covers drivers aged between 21 and 78. 
  • Previous convictions – it’s up to the insurer whether to provide you with cover. If you have a lot of penalty points or have been convicted of a driving offence, you might not be eligible for a pay-as-you-go policy.
  • Experience – you may not be eligible if you don’t have enough years of driving experience. For example, By Miles will only cover drivers who have held a licence for at least two years. 

If you drive very few miles every year, a pay-as-you-go or limited mileage policy could be a good choice as it might save you money. 

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At mustard.co.uk, you can search for car cover that suits you from a range of leading UK insurers.

Simply fill in our online form to compare quotes right now or speak to a friendly and expert member of the team on 0330 022 8814.  

 

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