By Miles, a UK insurtech company that offers pay-by-mile car insurance, has closed a £15 million Series B round led by CommerzVentures, with support from Octopus Ventures, Insurtech Gateway and JamJar.
The London-based startup aims to provide a flexible insurance scheme for the UK’s 19 million lower mileage drivers, those who drive less than 7,000 miles a year. After a fixed upfront cost to cover the car while it’s parked, users get their own unique per-mile rates to cover driving.
“Car insurance needs a shake-up if it’s going to remain relevant in a world of semi-autonomous, connected and electric cars. And in the current climate, insurers can’t ignore that – drivers want more flexibility and fairer pricing,” explained Paul Morgenthaler, partner at CommerzVentures.
Part of By Miles’ shake-up is offering connected car insurance that monitors your driving in real time. In February the company launched a new feature to alert policyholders if they drive through London’s ULEZ (Ultra Low Emission Zone) zone to help them avoid unnecessary penalties.
The coronavirus lockdowns have highlighted changing driving habits, according to James Blackham, the CEO and co-founder of the startup. “This crisis has shown UK drivers what we’ve known for a while: the way car insurance works now isn’t working for everyone. They’re rightly questioning why they should pay for insurance they’re not able to use, and asking why traditional car insurers can’t provide a flexible alternative to meet their needs,” he says.