With data showing drivers are covering 20% fewer miles than two decades ago* and the possibility of this trend accelerating post-Covid, the RAC is today launching a brand-new, flexible monthly subscription-based car insurance product aimed at saving money for people who drive under 6,000 miles a year.
Pay by Mile from RAC Car Insurance meets the changing needs of drivers and works by charging motorists a small agreed per-mile cost only for the miles they actually drive – the Mileage Premium – in addition to a set monthly fee to cover their vehicle while it’s parked – the Parked Premium. So, for those who drive relatively few miles, there may be significant savings to be had.
Keeping track of miles driven and monthly costs is easy with the Pay by Mile app, making it an ideal policy for anyone who drives infrequently or covers very different amounts of miles from one month to the next. There are no fees for changing vehicles or address, and any changes to either the Mileage or Parked Premium take effect immediately. And, with no ties, if a driver discovers Pay by Mile is no longer suitable for them or they sell their car, they can cancel straight away with no fees to pay.
Customers simply stick the small RAC ‘drive tag’ to their windscreen which detects when their car is in use and transmits the distance travelled to the Pay by Mile smartphone app – no other driving-related data is collected. Then, at the end of each month, the customer pays for the miles they’ve driven, and nothing more.
All Pay by Mile policies provide fully comprehensive insurance cover while a vehicle is being driven, and while it’s parked.* Drivers can track their mileage and cost 24/7 via their online account.