Covéa Insurance has unveiled its latest partnership, securing a deal with usage-based car insurance provider By Miles.
The deal gives Covéa policyholders access to the pay-by-mile insurtech firm’s comprehensive cover, which provides drivers with a low fixed upfront cost – covering theft, damage, and vandalism – and allows them to make monthly payments based on the exact mileage driven instead of paying a traditional annual premium.
The partnership comes as demand for usage-based insurance (UBI) products soared amid the COVID-19 pandemic, with By Miles recording more than a 150% increase in policy sales in March compared to the same period last year.
In a statement, Covéa said that the deal is part of its wider strategy “to deliver choice and more flexible solutions by working with innovative new businesses.”
“Our partnership with By Miles is an exciting collaboration reflecting the changing needs of motorists and allowing genuine flexibility for customers,” said James Gearey, managing director of personal lines and protection at Covéa. “We are absolutely thrilled to be working with them to drive better outcomes for more customers.”
By Miles, meanwhile, said the partnership “adds capacity to reach even more customers” and deliver “market-leading claims experience.”
“When we launched By Miles, we wanted to bring a fairer kind of car insurance to as many UK drivers as possible,” said James Blackham, By Miles chief executive and co-founder. “It’s great to be partnering with an experienced organisation like Covéa who are totally supportive of our progressive approach to car insurance and believe in the power of pay-by-mile.”
“We’ve seen demand for our pay-as-you-drive model surge as UK drivers look for more flexible insurance cover that better fits their needs post-lockdown,” Blackham added. “We’ve just had our strongest sales months ever and this partnership will allow us to bring the benefits of pay-by-mile to even more people around the country.”