Wrisk partners with RAC to offer Pay by Mile subscription car insurance

Innovative model built on mobile-first platform give drivers a fully flexible car insurance experience. “Pay when you drive – save when you don’t” genuine subscription policy without penalty anticipates changing car ownership and driving behaviour patterns.
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London, 17th March, 2021: Wrisk, the UK Insurtech leader, has partnered with the RAC to launch Pay by Mile, a ‘first of its kind’ flexible monthly subscription-based car insurance product allowing people to only pay for the miles they drive. In contrast, traditional car insurance works by charging drivers a premium based only on a mileage estimate, with no refund for drivers who end up driving less. 

Wrisk and the RAC believe this is the first product that combines genuine subscription policies - allowing customers to make changes or cancel anytime and without penalty – with ‘pay by mile’ pricing that uses a simple device which, in combination with a smartphone, derives actual mileage driven and offers rates that reflect that usage.

Building on its successful track record of creating modern, frictionless insurance experiences for the mobility sector, Wrisk has been able to power the RAC’s Pay by Mile product with monthly rolling or “perpetual insurance” contracts rather than annual terms, with no interest charged for paying monthly. 

Wrisk and the RAC have also been mindful of the drivers this particular product addresses: people who drive less than 6,000 miles a year and have been poorly served by the insurance market so far. 

In order to match those customers’ tracking preferences, Wrisk have chosen a single, simple signal: the number of miles they drive per month. This has the potential to be enhanced later on with other signals such as where they drive, when they drive, or even weather conditions – but always with the goal of basing ratings only on information which customers feel is in their benefit to share.  

Nimeshh Patel, Wrisk CEO, said: “We are excited to be working with the RAC to launch such an innovative product. UK drivers have been covering fewer and fewer miles over the past years, and Covid restrictions have only accelerated this trend with a significant number of people expected to work from home at least a day or two each week. This means there has never been a more urgent need for a flexible insurance that adapts to people’s lives. 

We’re proud of this collaboration with the RAC and see it as another step in our mission to create a new standard for insurance that makes simplicity, transparency and customer ownership the norm. With new mobility trends like autonomous driving, electric vehicles and different ownership models gaining momentum, we want to always be thinking ahead of evolving protection needs - in partnership with both the insurance and automotive industry”. 

Mark Godfrey, managing director of RAC Insurance, added:Car insurance is a market that’s been ripe for a shake-up for some time, so we’re thrilled to introduce a truly pioneering mobile-first subscription-based product which is ideally suited to drivers who don’t do that many miles. Wrisk’s technology is ideally suited to creating a platform that allows our customers to easily access and monitor their car usage and monthly payments. The fast and hassle-free online quote process they developed also makes it easy for drivers to see if they could start saving money with Pay by Mile, and also provides an experience that feels similar to other digital-first services they might use”. 

How it works 

  • Simple pricing. After paying an initial one-off activation fee, the premium is made up of two parts: the parked premium – this is a small set charge paid at the beginning of each month to insure the vehicle whilst it’s not being used, and a per mile premium – a small per-mile charge for insuring the car while it’s being driven, which is paid at the end of each month
  • A true monthly subscription – no fees for amending a policy, and customers are free to cancel at any time without being charged
  • No credit agreement – pay monthly at no extra cost 
  • Management of policy securely online or via the Pay by Mile app
  • No tricky devices to plug in, and no tracking of driver behaviour – customers just stick the Pay by Mile ‘drive tag’ to their windscreen, pair it with their smartphone, and their miles are recorded
  • Read more here: https://www.rac.co.uk/insurance/pay-by-mile