Martin Lewis offers advice about cancelling car insurance

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Experts at the group claim the pandemic has “accelerated a long-term decline” in the number of miles British drivers travel, making a mileage-based policy feasible. Drivers will select an average mileage allowance for the year which will be monitored using a smart device.

This would be plugged into the vehicle via a socket inside the car.

The new tool will track the driver’s mileage at all times and regularly update them on how many miles they have driven.

Anthony Aronin, Head of Telematics Insurance at More Than said the scheme has been launched after fears road users would be “driving less” after the pandemic.

He said: “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.

“Recognising this need, we want to ensure everyone has access to insurance that best suits their needs.

“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.”

His fears were backed up by a recent survey conducted by the firm which found 17 percent will use their car less over the next year.

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More than a quarter of road users said they would see permanent changes to their working patterns with 55 percent expected to spend more time at home.

Those travelling less for work reasons are expected to travel 1,044 fewer miles or 75 fewer days on the road.

The average number of miles travelled by British drivers has been on a steady decline for the last two decades.

The average number of miles fell from 9,200 per year in 2002 to just 7,600 in 2018.

However, this is expected to drop even more with just 5,936 miles predicted for 2021.

Pay per mile insurance is already available at some smaller firms but new schemes from More Than and the RAC are the first major household names to introduce the scheme.

The pay per mile scheme is being developed in partnership with global vehicle and data deriving firm Insurance and Mobility Solutions (IMS).

Bob Skerett, CEO of IMS, Insurance Division said a low mileage scheme was “undoubtedly the right product” to introduce at this time.

He said: “We’ve built a strong relationship with More Than as suppliers of connected insurance technology.

“The mileage-based approach is the optimum way forward at this stage in the insurance revolution.

“Low Miler is undoubtedly the right product at the right time.”

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