Car insurance disrupter By Miles has raised 拢5 million in a Series A funding round led by Octopus Ventures.
The insurtech start-up based in London is the UK鈥檚 first real-time pay-per-mile car insurance provider and has won awards for its jargon-free approach to insurance.
By Miles claims its policies are fairer to the UK鈥檚 19 million drivers who drive less than 7,000 miles a year.
Cars are covered by a fixed annual cost while parked then a unique per-mile rate covers the actual driving, measured by a 鈥楳iles Tracker鈥� linked to the By Miles app which allows drivers to see the cost of their journeys.
鈥淭hose who don鈥檛 drive as much are being treated unfairly. They鈥檙e charged more to subsidise the insurance of higher mileage drivers,鈥� said CEO James Blackham, who set up the business with CTO Callum Rimmer.
鈥淲e鈥檙e 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鈥檛 got the best reputation.
鈥淭his 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.
鈥淲e 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.鈥�
The company has already attracted thousands of users which have collectively driven more than a million miles since its July 2018 launch.
It has a 9.7/10 rating on Trustpilot and is the first insurance provider in 30 years to be awarded a Plain English award for its jargon-free policy handbook.
The funding will allow By Miles to further invest in its customer service team and in-app claims handling.
It will also roll out more innovative car insurance products.
Malcolm Ferguson, principal & early stage investor at Octopus Ventures, said: 鈥淭eaming up with By Miles was a no brainer for us; they have already had a huge impact on the car insurance market with their customer-first approach.
鈥淭he car insurance industry is known for being complex and difficult to navigate. By Miles is changing this perception by offering a fair pricing model based on use, driving savings across the board.
鈥淭hey are set to change the car insurance market for good and we want to help them do just that.
鈥淲e are looking forward to supporting By Miles as they continue to grow from strength to strength.鈥�
By Miles has also secured funding commitments from original investors including Insurtech Gateway, InMotion Ventures and JamJar Investments.