Driving Change on the cost of living crisis.

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Will Kerr

Episode 2 of the By Miles podcast is here. This time the gang are discussing the cost of living crisis, its impact on driving – and what insurers should be doing to help. Check it out below (or swing by our YouTube channel where you can see episode 1 as well).

People are making cuts wherever they can – and that includes mileage. 

We know that 78% of people have taken active steps to cut the cost of their driving – with that figure going even higher in the case of under 35’s. This suggests that for many, driving is becoming dangerously unaffordable. 

It’s not surprising to see that people are turning to other ways of getting around. In episode 1 of Driving Change we talked about the surge in alternatives to car ownership, from share schemes to e-bikes. The thing is, even if you’re using your car much less than you used to, you’re still going to need car insurance (unless you declare your car SORN). 

Unfortunately, like just about everything else right now, car insurance has been getting more expensive. To make matters worse, driving less hasn’t always helped people get a better price on their cover. In fact, our research found the opposite to be true. Yep, traditional car insurers were actually charging people more, for driving less

We didn’t think that was right… 

If people are driving less, they deserve to save. 

Ditching the car altogether is simply not an option for many people – so companies should be innovating to help people bring down their costs. We believe our pay-by-mile car insurance is a prime example of that. 

Anyone can lower their spend on petrol by driving as efficiently as possible and cutting out the odd car journey here and there. But when a By Miles member does that, they’re not just lowering the amount they spend on fuel –  but insurance, too. As you’ll hear from Faith, our Head of Customer Experience, in the podcast:

“I’ve heard time and time again from customers on the phone that [pay-by-mile car insurance] has been the difference between owning a car and not for them – because they have that level of control.” 

Claims inflation is real. So how do insurers help drivers cut costs?

As well as inflation, shortages of microchips, mechanics and materials (such as palladium) have all contributed to making repairs more expensive. And it’s not just that claims are more expensive – there are more of them, too. That’s because – as tends to happen during tough times – crime has gone up. 

claims inflation
Microchips have been in short supply. But are ideas on how to save drivers money aren’t.

Our pay-by-mile model and the variety of payment options we offer give drivers more flexibility and control when it comes to spending. But we want to go further. And one of the best ways to make insurance cheaper is to prevent claims happening in the first place. 

Traditionally, insurers haven’t really done a lot in this area – which is strange when you think about it. Of course people want to know they’re covered in an accident, but they’d rather not have one in the first place. And while a life boat is great, it doesn’t help you swerve the iceberg. 

At By Miles we’re going down a different path. Instead of offering insurance that’s purely reactive, we’re making things interactive – using our data and technology to help people make smart decisions, stay safe and avoid claims. 

There’s the thefts we’ve thwarted by actively recovering members’ cars, the help or Car Medic feature plays in helping people their vehicles working correctly, security boosts like our faraday pouch giveaway  – or just the day-to-day role we play in keeping folks educated on how they can lower their risk. Ultimately, we feel people should be getting helpful services from their insurer (like the ones in our app) whether they claim or not.