It is an undeniable truth that many people buying or leasing electric cars are using them as a second vehicle. You get to show off your St Greta green credentials at work and to friends & family, plus you avoid VED tax and – for now – benefit from free charging points at Tesco and other places as the push to convert UK drivers to EVs continues.
That is great news, if you can afford the high purchase price, but there’s another saving to be made because if you own a second `weekend’ car then you probably don’t need an annual Fully Comp policy. It may well be cheaper to buy insurance by the mile and this might be well be a major part of the car, and motorcycle, insurance market in the future. Here’s an update from By Miles, who are leaders in the PPM insurance sector;
By Miles, the UK’s first pay-by-mile car insurance provider, today announces the launch of the world’s first connected car insurance policy.
This world-first connected car insurance policy takes information directly from Teslas and uses information about the distance driven (but not the way the car is driven) to price insurance. It is the first car insurance policy in the world to take data directly from the car without any ‘black box’.
The policy has been specifically designed with Teslas in mind, offering lower mileage owners (those who drive under 7,000 miles a year) a chance to save hundreds of pounds on their annual car insurance costs.
One in 10 new cars sold are now electric, and the Tesla Model 3 was the UK’s third best-selling new car earlier this year. But the global car insurance market has failed to keep pace with the technology-driven transformation of the automotive industry.
Tesla owners have limited options when it comes to getting insured, and premiums are expensive and not fit for purpose, with many major UK insurers quoting annual prices of over £2,000 for the Model 3.
To activate the policy, drivers simply connect their Tesla with their By Miles account by logging in. There’s no need to install a black box at all. Policyholders will experience benefits including:
● Drive less, pay less – pay-per-mile insurance means users who drive less rightfully pay less. Drivers have total transparency thanks to the By Miles smartphone app and are able to instantly see the cost of each day’s miles – then pay for what they’ve driven monthly.
● Electric-first policy coverage – ensuring owners of fully electric cars get fully comprehensive coverage, including items often not included on insurance policies as standard, such as damage or theft of charging cables and accessories as well as electric car batteries.
● Find my Tesla – if a driver’s Tesla is stolen, By Miles’ specialist claims team will quickly track down your Tesla. In fact, in the last year 75% of cars stolen on standard By Miles pay-by-mile policies have been recovered and brought back to the owner.
● Official Tesla repairs – guaranteed repairs for five years using official Tesla parts, and at approved Tesla garages.
Simon Pardo from Surrey has been trialling By Miles’ connected car policy with his Tesla Model S for the last few months. Simon commented: “It’s not always been easy getting sensibly-priced insurance for Teslas in the UK, so when I heard that By Miles were launching a new policy, I was excited to try it out. Connecting my Tesla to the policy was really easy and I’ve enjoyed keeping track of my daily miles. It makes my current car insurance look very old fashioned – and I can’t wait to see what new features they cook up next!”
James Blackham, co-founder of By Miles, said, “Electric and connected cars are the future. The insurance industry needs to catch up and launch policies as smart as the cars themselves.
“Our policy is the first connected car insurance policy in the world, and the first to offer pay-by-mile cover without the need for any external technology like a black box or smartphone. We’re going totally trackerless.
“Tesla drivers have been getting a raw deal on car insurance, mostly because the old fashioned big insurers don’t understand their cars. But we think Tesla owners should be rewarded for making an eco-friendly choice.
“We’re offering UK Tesla owners who drive less than 7,000 miles a year the opportunity for fairer, more flexible premiums and a host of added extras that will do away with the many inconveniences the insurance industry inflicts on owners of connected or electric cars.
“We’re confident our world-first policy will be an instant hit with Tesla owners and form the future of car insurance – usage-based policies that adapt to the specific needs and risks of each driver. It won’t be long before we’ll be offering different rates for when a human is driving compared to when the car is driving itself.”
Olivier Jaillon, Chief Enablement Officer of La Parisienne, “We’re delighted to be partnering with By Miles to launch the world’s first connected car insurance policy, and we’re thrilled to be launching a policy that gives Tesla owners a chance to lower the cost of their car insurance. As an industry leader in innovation, we need to stay ahead of the game and create the insurance of tomorrow. Working with By Miles to create a really impactful and transparent product that will change the insurance landscape just made sense.”