Insurtech Wrisk partners with RAC to offer Pay by Mile car insurance
UK insurtech Wrisk has partnered with UK roadside assistance and automotive firm the RAC to launch Pay by Mile, a flexible monthly subscription-based car insurance product allowing people to only pay for the miles they drive.
Wrisk and the RAC claim this is the first product that combines genuine subscription policies - allowing customers to make changes or cancel anytime and without penalty – with ‘pay by mile’ pricing that uses a simple device which, in combination with a smartphone, derives actual mileage driven and offers rates that reflect that usage.
Wrisk and the RAC say the product especially addresses the needs of people who drive less than 6,000 miles a year and have been poorly served by the insurance market so far.
In order to match those customers’ tracking preferences, Wrisk have chosen a single, simple signal: the number of miles they drive per month. This has the potential to be enhanced later on with other signals such as where they drive, when they drive, or even weather conditions – but always with the goal of basing ratings only on information which customers feel is in their benefit to share.
Nimeshh Patel, Wrisk CEO, said: “We are excited to be working with the RAC to launch such an innovative product. UK drivers have been covering fewer and fewer miles over the past years, and Covid restrictions have only accelerated this trend with a significant number of people expected to work from home at least a day or two each week. This means there has never been a more urgent need for a flexible insurance that adapts to people’s lives.
“We’re proud of this collaboration with the RAC and see it as another step in our mission to create a new standard for insurance that makes simplicity, transparency and customer ownership the norm. With new mobility trends like autonomous driving, electric vehicles and different ownership models gaining momentum, we want to always be thinking ahead of evolving protection needs - in partnership with both the insurance and automotive industry”.
Mark Godfrey, managing director of RAC Insurance, added: “Car insurance is a market that’s been ripe for a shake-up for some time, so we’re thrilled to introduce a truly pioneering mobile-first subscription-based product which is ideally suited to drivers who don’t do that many miles. Wrisk’s technology is ideally suited to creating a platform that allows our customers to easily access and monitor their car usage and monthly payments. The fast and hassle-free online quote process they developed also makes it easy for drivers to see if they could start saving money with Pay by Mile, and also provides an experience that feels similar to other digital-first services they might use.”
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