CAR OWNERS can cut down costs on their motor insurance by switching to pay-per-mile cover.
Designed for those who don’t travel too far too often, a black box tracks every journey you make and charges you accordingly.
Insurers such as By Miles, launched earlier this year, offer policies from as little as 3p per mile depending on how much you drive and your home address, for example.
The caveat being, customers have to pay a one-off fee from around £150 to insure a car for the times its parked as well as purchase of the telematics gadget.
Record-label owner John Leahy from north London said he will save up to £150 this year thanks to the service, according to the BBC.
He travels around 4,000 miles a year and has been tailored a 3.4p a mile fee, in addition to his £170 one-off cost and £50 deposit. That equates to a projected £356 premium.
Rated a full five stars from Defaqto in August, the fully-comprehensive cover is backed by AXA Insurance.
Policies are recommended for those who travel less than 7,000 miles a year.
However, costs are capped at 10,000 miles per annum no matter how much more you travel, as well as at 150 miles a day.
You can track every journey – and its cost – via an app, while bills are paid on a monthly-basis only.
Pay-per-mile insurers, such as Dayinsure, may restrict their policies to 17 to 75 year olds.
The RAC Foundation found that the average car is only used as little as four per cent of the time, in a study published back in 2012.
Motors are parked at home 80 per cent of the time, and parked elsewhere for 16 per cent of its ownership.