RAC launches ‘no ties’ pay-by-mile insurance for low-mileage drivers

By Matt Allan
Published 24th Mar 2021, 12:00 BST
Updated 24th Mar 2021, 12:08 BST

The RAC has become the latest car insurance provider to introduce a pay-as-you-go policy.

The “no-ties” cover has been launched in the wake of data showing miles driven are 20 per cent lower than 20 years ago and a prediction that motorists’ mileages could fall even further in a post-Covid world where more people work from home.

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Charging drivers from 4p per mile, the RAC says the policy is aimed at saving money for drivers who cover fewer than 6,000 miles a year, and is suitable for those whose mileage varies significantly from month to month.

The new fully comprehensive policy charges users a monthly "parked" price to cover the car when it’s not in use, then uses a windscreen-mounted drive tag to monitor the car’s mileage, charging an agreed per-mile price for the miles driven.

Many drivers have been covering far fewer miles since the start of the Covid outbreak (Photo: Shutterstock)Many drivers have been covering far fewer miles since the start of the Covid outbreak (Photo: Shutterstock)
Many drivers have been covering far fewer miles since the start of the Covid outbreak (Photo: Shutterstock)

The RAC says the policy is completely flexible, charging no fees after an initial £50 ac