By Miles Raises $18 Million for Pay-By-Mile Auto Insurance – Finovate

By Miles Raises  Million for Pay-By-Mile Auto Insurance - Finovate
By Miles Raises  Million for Pay-By-Mile Auto Insurance - Finovate

With the coronavirus keeping drivers off the road, there has been a lot of discussion surrounding auto insurance. In fact, many providers have recognized the decreased daily mileage (and the increased need for cash) during this time, and responded by offering rebates and credits to consumers in return.

Because of this, the pay-by-mile insurance model is looking more sensible than ever. This is likely what CommerzVentures was thinking when it led By Mile’s $18.3 million (£15 million) round of funding. Existing investors Octopus Ventures, Insurtech Gateway, and JamJar also participated.

“This crisis has shown U.K. drivers what we’ve known for a while: the way car insurance works now isn’t working for everyone,” said ByMiles CEO and CoFounder James Blackham. “Our pay-by-mile car insurance provides lower mileage drivers with a flexible, lower cost policy that drivers can track in real-time.”

Launched in 2016, By Miles offers U.K. residents a new alternative for car insurance in which drivers only pay for the miles that they drive. The company offers two options, both aimed at users that drive less than 7,000 miles per year. The Standard option uses a Miles Tracker device, a black box that plugs into a car’s dashboard. The telematics device uses mileage data from the user’s car to help price their insurance. The device does not use other data, such as speed, to price the insurance. Newer cars can use By Miles’ Trackerless option that pull mileage data directly from the connected cars’ manufacturer.

ByMiles is already seeing growth thanks to the global pandemic. The company experienced its strongest sales in April.