Insurtech group By Miles announced it has successfully raised £15m in a Series B funding round led by CommerzVentures.
Existing investors Octopus Ventures, Insurtech Gateway and JamJar investments also contributed to the new investment that will be used to support growth within the real-time pay-by-mile car insurance provider.
The insurtech company offers low mileage drivers a flexible way to pay for car insurance cover that ensures you only pay for the miles you drive.
The Insurtech group welcomed its strongest week of trading in April amid less car usage following lockdown.
James Blackham, co-founder and CEO of By Miles, said: “This crisis has shown UK drivers what we’ve known for a while: the way car insurance works now isn’t working for everyone.
“They’re rightly questioning why they should pay for insurance they’re not able to use, and asking why traditional car insurers can’t provide a flexible alternative to meet their needs.”
He added: “Our pay-by-mile car insurance provides lower mileage drivers with a flexible, lower cost policy that drivers can track in real-time. We’re thrilled that CommerzVentures are joining us to bring our fairer kind of car insurance to even more drivers.
“They bring considerable experience of scaling new insurance businesses, and we look forward to working with them as demand for pay-by-mile grows.”
Paul Morgenthaler, partner at CommerzVentures, said: “Car insurance needs a shake-up if it’s going to remain relevant in a world of semi-autonomous, connected and electric cars.
“And in the current climate, insurers can’t ignore that – drivers want more flexibility and fairer pricing. By Miles is offering just that: a simple and transparent pay-by-mile model, exceptional customer service and significant savings via an easy-to-use app.”
He added: “Our job is to support the growth of companies with the potential to redefine and modernise insurance.
“I believe in By Miles we’ve found exactly that, and we’re excited to be joining them on the journey to transform car insurance as we know it, forever.”