New auto insurance policy targets low mileage drivers


A new type of auto insurance policy has been launched in response to changing driving habits during the Covid-19 pandemic.

According to auto insurer More Than, two distinct types of motorists have emerged in the past year: low mileage drivers and high mileage drivers. It has launched a new mileage-based system for those who don’t travel very far.

The Low Miler product uses a telematics device to “provide a fairer way to provide auto 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, then receive a device that plugs into an outlet inside the car. It tracks the customer’s mileage, regularly updates it on the distance traveled and allows them to purchase additional miles if needed.

More Than says 17% of UK drivers expect to use their cars less over the next year compared to pre-pandemic levels. His research suggests that drivers will spend more time at home (55%), use online deliveries more (28%), and change their work habits (26%).

Additionally, 24% of UK drivers said they would drive fewer miles to work compared to before the pandemic.

However, 30 percent plan to drive more to visit family and friends, while 28 percent plan to use their car for more day and weekend trips.

“Offer low-mileage drivers a fairer offer”

“The way we drive and use our cars will not be the same for some as we exit this pandemic. With more flexible working arrangements and fewer commutes, some people are likely to drive less, ”said Anthony Aronin, Telematics Manager at More Than.

“That’s why we’re launching More Than Low Miler, an innovative way to tie bonuses to miles driven by customers, giving those who drive fewer miles a fairer deal. “


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