Pay-as-you-go car insurer raises £1m one week after launch

New pay-as-you-go car insurer By Miles has secured a seven-figure investment.

The London-based company, launched to the UK public last week, offers drivers car insurance by the mile.

It charges customers a fixed annual fee to cover their car while parked, then bills them on a monthly basis for the number of miles driven.

By Miles is geared towards drivers who travel less than 7,000 miles a year, which could include city dwellers or those who only get behind the wheel on weekends.

JamJar Investments, the venture capital fund created by the founders of soothie giant Innocent Drinks, led the £1m fundraise.

Other participants included insurance-led incubator InsurTech Gateway, set up by investor Hambro Perks and insurance firm Lumley; and InMotion Ventures, venture capital fund of automaker Jaguar Land Rover.

The co-founder and CEO of By Miles, James Blackham, said: “We started By Miles two years ago because we believed drivers like us were being charged way too much to insure cars they rely on but don’t drive that often, so we built a simpler and smarter way of pricing car insurance.

“Following our recent launch, this new round of investment means we can continue to improve the features in our app, making car ownership even easier for people that don’t drive much.”

JamJar Investments co-founder Jon Wright commented: “As soon as we heard about By Miles, we knew we wanted to get involved.

“Although car insurance is not exactly a purchase everyone looks forward to making, the team at By Miles are changing that: their pricing is smarter, their customer service better, and their app gives you useful driving tools as well as a policy with added benefits. They’re set to shake up the car insurance market.”