UK-based real-time pay-by-mile car insurance provider By Miles has raised £15m.
The Series B funding round was led by CommerzVentures, with participation form existing investors Octopus Ventures, Insurtech Gateway and JamJar investments.
The InsurTech firm is targeting the UK’s 19 million lower mileage drivers – those who drive less than 7,000 miles a year.
The firm said that it saw its strongest sales week ever in April, suggesting the lockdown as motivation for drivers looking to switch.
The firm’s policy requires a fixed upfront cost to cover the car while it’s parked, and a unique per-mile rate to cover driving.
James Blackham, co-founder and CEO of By Miles recently campaigned for fairness across the UK insurance industry during the Covid-19 lockdown while motorists are using their cars less.
He said: “This crisis has shown UK drivers what we’ve known for a while: the way car insurance works now isn’t working for everyone. They’re rightly questioning why they should pay for insurance they’re not able to use, and asking why traditional car insurers can’t provide a flexible alternative to meet their needs.
“Our pay-by-mile car insurance provides lower mileage drivers with a flexible, lower cost policy that drivers can track in real-time. We’ve already proved this is something UK drivers want, hitting nearly 39 million miles insured. And we only expect to see demand growing as driving habits shift while we work our way back to a new normal post lockdown.
By Miles launched the first connected car insurance policy designed to help Tesla drivers in December 2019, and in February 2020 launched a new feature to alert policyholders if they drive through London’s ULEZ (Ultra Low Emission Zone) zone to help them avoid unnecessary penalties.
Paul Morgenthaler, Partner at CommerzVentures, added: “Car insurance needs a shake-up if it’s going to remain relevant in a world of semi-autonomous, connected and electric cars.
“Our job is to support the growth of companies with the potential to redefine and modernise insurance. I believe in By Miles we’ve found exactly that, and we’re excited to be joining them on the journey to transform car insurance as we know it, forever.”