Less Miles Should Mean Cheaper Insurance

Motorists are being urged to check their mileage to see if they would benefit from a pay per mile insurance policy, as flexible working patterns mean thousands of drivers are overpaying for their policy.

Recent findings from a leading price comparison website found that a considerable proportion of drivers (17%) who travel less than 4,000 miles annually have the potential to save an average of £168 by transitioning from an annual comprehensive car insurance policy to a pay-per-mile alternative.

The policies are designed to be a fairer option for low mileage drivers because these motorists use their cars less often, and so are less likely to have an accident or make a claim. 

The research conducted by Compare the Market, shows there has been a 125% increase in the percentage of drivers who have transitioned to pay-by-mile provider, By Miles, since the year 2020. 

According to By Miles' analysis of the most recent MOT data, the mean yearly distance travelled by drivers in the United Kingdom has decreased by over 1,000 miles to 5,398 in 2021, representing a 24% reduction in comparison to levels observed prior to the pandemic. 

The analysis reveals that over 70% of drivers (74%) currently travel less than 7,000 miles annually.

The report shows that there is a clear link between reduced mileage and potential cost savings for drivers who opt for a pay-per-mile insurance policy. 

“Flexible working, environmental concerns, and the increasing cost of driving mean many motorists are typically driving fewer miles each year,” said Compare The Market’s insurance expert, Julie Daniels.

“It’s important to fully understand how many miles you drive annually, but for motorists who are reducing their mileage, taking out a pay-by-mile policy could be an effective way for you to save money.”