A new type of car insurance policy has been launched in response to changing driving habits during the Covid-19 pandemic.
Two distinct types of motorist have emerged over the past year, according to car insurer More Than: low mileage and high-mileage drivers. It has launched a new, mileage-based system aimed at those who don’t travel very far.
The Low Miler product uses a telematics device to ‘provide a fairer way of offering car insurance for those who use their cars less often or travel shorter distances’.
Low Miler customers select a mileage allowance for the year, up to a maximum of 7,000 miles, and then are sent a device that plugs into a socket inside the car. It tracks the customer’s mileage, regularly updating them on how far they have driven and allowing them to buy top-up miles if needed.
More Than says 17 percent of UK drivers expect to use their car less over the next year compared to pre-pandemic levels. Its research suggests drivers will spend more time at home (55 percent), use online deliveries more (28 percent) and change their working patterns (26 percent).
Additionally, 24 percent of UK drivers said they will be covering fewer miles on the commute to work compared with before the pandemic.
However, 30 percent intend to drive more to visit family and friends, while 28 percent expect to use their cars for more day and weekend trips.
‘Giving low-mileage drivers a fairer deal’
“How we drive and use our cars won’t be the same for some as we come out of this pandemic. With more flexible working arrangements and less commuting, some people will likely be driving less,” said Anthony Aronin, head of telematics at More Than.
“That’s why we’re launching More Than Low Miler, an innovative way of linking premiums to the miles customers drive, giving those who drive fewer miles a fairer deal.”
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