RAC has launched a new Pay by Mile monthly subscription-based car insurance product which aims to save money for people who drive under 6,000 miles a year.
The new insurance product charges motorists a small agreed upon “per-mile cost” for the miles they actually use as well as a set monthly fee to cover their vehicle while it’s parked which could end up saving drivers in the long run.
RAC suggested that there are no fees for changing vehicles or address, and any changes to either the Mileage or Parked Premium take effect immediately.
Additionally there are “no ties” so if a driver discovers Pay by Mile is no longer suitable for them or they sell their car, they can cancel straight away with risk of penalty fees.
Customers can stick the small RAC drive tag to their windscreen which detects when their car is in use and transmits the distance travelled to the Pay by Mile smartphone app which provides a monthly report of “actual car usage”.