Estimated 550 million fewer miles driving in the UK since pandemic

The UK’s only pay-by-mile car insurance provider By Miles, is renewing it’s effort to show the value of their “pay-as-you-drive” insurance product as the UK continues down it’s current lockdown. The number of trips taken and duration have all decreased, and UK insurers have been slow to reward policyholders for the resulting reduction in the frequency of accidents.

UK auto insurers slow to reward drivers for driving less during lockdowns

The Association of British Insurers reported a 48% reduction in number of claims filed in the first lockdown (April – June 2020) and By Miles predicts that insurers will see industry profits be even higher during this lockdown. Admiral Insurance was first to offer an automatic refunds of £25 during the first lockdown but did not repeat (so far) this refund in the current lockdown. According to By Miles, a fairer discount would have been £65, based on the reduced risk to insurers.

By Miles reports that their pay-per-mile offering has seen customers save 25% during 2020, an amount inline with their reduction in miles driven during the same period.

Read the interview in the Actuarial Post