Home Car insurance policy RAC Launches “Pioneer” Pay by Mile Auto Insurance Policy

RAC Launches “Pioneer” Pay by Mile Auto Insurance Policy


The RAC has introduced a new type of “pioneer” auto insurance in which drivers are billed for coverage by the mile, rather than on a fixed monthly or annual basis.

Dubbed Pay by Mile, the new program is designed to help people over 21 who drive less than 6,000 miles per year – a growing share of the market, according to the RAC, due to lockdowns and other effects of the pandemic. Covid-19.

After paying a one-time activation fee of £ 50, drivers insured under the scheme pay a small monthly fee to insure their vehicle when not in use (the parking fee) and then an additional rate of £ 50. ‘as little as 4 pence per mile for every mile they drive (the price per mileage).

“For those who drive relatively few kilometers, there may be significant savings to be made,” said a spokesperson for RAC.

Costs per precise mile are determined on a case-by-case basis, with 4p quoted as the minimum price.

Drivers keep track of their insurance costs through RAC’s Pay by Mile app and a small RAC ‘driving tag’ which, when installed on their car’s windshield, detects when the car is in motion. in use. The beacon then transmits the distance traveled to the application to calculate the cost.

Pay by Mile insurance is paid monthly and can be canceled immediately without charge. The policy is underwritten by Highway Insurance Company Limited, which is part of LV. The Pay by Mile app is based on a platform created by insurance technology company Wrisk.

“Auto insurance is a market that has been ripe for upheaval for some time,” said RAC CEO Mark Godfrey. “We are delighted to present a truly pioneering new product that is ideal for drivers who do not cover that many kilometers. “


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