By Miles

By Miles and pay-per-mile car insurance for lower mileage drivers

By Miles is a UK motor insurer built around a usage-based model: policyholders pay a fixed annual amount that covers the car while it is parked, plus a per-mile rate for the distance they actually drive. The company presents this structure as a fairer alternative for people who drive relatively little, and states that its policies are designed to save money for those covering under 7,000 miles a year.

The insurer is authorised and regulated by the Financial Conduct Authority (FCA) and its policies are underwritten by a panel of insurers. It also reports a Defaqto five-star rating for its cover and an 'Excellent' rating on Trustpilot.

How the mileage is measured

By Miles offers two ways of counting distance. The first is a Miles Tracker, a device the size of a matchbox that the customer plugs in under the dashboard; it connects and activates automatically, a process that can take up to 20 minutes the first time. The second, available for newer cars, is a trackerless policy in which the manufacturer is authorised to send mileage data directly from the car's mileometer, with no hardware involved.

The company stresses that its product is "pay as you drive" rather than "pay how you drive": driving style is not used to price the premium, only distance. Journey costs and daily mileage are visible through the mobile app or the web dashboard, which also provides driving tools and reminders such as MOT or car tax notifications.

What the policy includes

• Comprehensive cover whether the car is parked or being driven.
• A personalised per-mile rate, usually of a few pence per mile.
• Guaranteed No Claims Discount protection as standard, retained even if a claim is made.
• Daily mileage costs capped at 150 miles, with no charge beyond that threshold and no cap on total mileage.
• Overseas cover equivalent to the UK policy in any European Union country plus Iceland, Liechtenstein, Norway and Switzerland for up to 90 days in any 12-month period; afterwards, only the minimum compulsory insurance required by EU law applies.
• Up to three self-serve policy changes per year free of charge.

Quotes, renewals and cost structure

When a quote or renewal is issued, the total estimated annual cost is presented based on the mileage the customer expects to drive, split between the upfront fixed fee and the per-mile rate. If the actual distance turns out to be lower, the cost falls accordingly. The company argues that traditional insurers struggle to track real mileage and may assume more driving than declared, whereas its system measures usage directly.

Current status of the service

The site carries a notice stating that By Miles is no longer offering quotes to new customers. Existing members retain valid cover until their policy ends and can continue to contact the company, manage their policy and use the app or web dashboard as normal. A recent change of underwriter is mentioned, with no change to cover or to how policies and data are managed.

Recognition cited by the company

Among the distinctions listed are Best Car Insurance Provider at the Insurance Choice Awards 2021, Best Insurance App at the Insurance Choice Awards 2020, the Customer Services Excellence Awards 2020, the Claims Excellence Awards 2019 and the Plain English Awards 2018.