UK-based insurtech startup By Miles, which provides pay-per-mile car insurance, has raised raises £5 million in Series A funding led by Octopus Ventures.
The company has also secured further funding commitments from existing investors JamJar Investments, InMotion Ventures, the investment arm of Jaguar Land Rover, and original investors Insurtech Gateway.
Launched in July 2018
, the insurtech targets motorists that drive infrequently – typically under 7,000 miles a year. Rather than paying an annual premium, drivers pay a lower fixed amount each year to cover their non-driving risks.
By Miles measures each journey using a matchbox-sized black box device called a Miles Tracker, with drivers able to access the cost of each trip through a smartphone app.
The company said it will use the latest investment to further develop in-app claims handling and roll-out more innovative car insurance products.
James Blackham, co-founder and CEO of By Miles, said: “Those who don’t drive as much are being treated unfairly. They’re charged more to subsidise the insurance of higher mileage drivers. We’re using tech to stop people being overcharged for their car insurance. At the same time we also want to change the way the industry interacts with its customers. It hasn’t got the best reputation!"
“This investment will allow us to bring the benefits of pay-by-mile to the 19 million low mileage drivers out there that may not have already discovered the fairer way to pay," Blackham added. "We will continue to place customer experience at the heart of this new wave of car insurance, improving the tech, the level of service and expanding our team. We’re proud to be putting customers first, only charging for miles driven and making car ownership more affordable. And reaching our millionth mile shows this approach is something UK drivers really want.”
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By Miles, UK, insurtech, funding, car insurance