What is By Miles Car Insurance UK 2026

Last reviewed: 26 April 2026

What By Miles is and its regulatory and underwriting structure

By Miles Limited is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 769339. Confirm current regulatory status at register.fca.org.uk. By Miles is incorporated in England and Wales and operates at bymiles.co.uk. As an FCA-authorised insurance intermediary, By Miles arranges policies underwritten through Lloyd's of London syndicates, the specialist insurance market providing capacity for non-standard and innovative insurance products including pay-per-mile motor insurance.

Lloyd's of London is a regulated insurance market, not a single insurer. The specific Lloyd's syndicate underwriting By Miles policies provides the risk capital behind each policy. Policies are arranged by By Miles Limited as the distributing intermediary and underwritten by the Lloyd's syndicate, whose details are available in the By Miles policy documentation.

By Miles was founded in 2018 and was among the first UK brands to bring a consumer-grade pay-per-mile motor insurance product to market. The FCA regulatory framework applicable to By Miles includes ICOBS for insurance distribution conduct and, from July 2023, the Consumer Duty requirements ensuring that the products it arranges deliver good consumer outcomes.

How the pay-per-mile pricing model works

By Miles charges two separate premium components: a fixed monthly base premium and a variable per-mile premium charged for each mile driven during the billing period.

The base premium covers the vehicle when it is parked, fire, theft, and third-party liability for stationary risk. The base premium is fixed for the policy term and reflects standard actuarial rating factors: the vehicle's Thatcham insurance group, the policyholder's age, postcode, no-claims discount, and claims history. The base premium is paid monthly regardless of mileage driven.

The per-mile rate is charged for each mile actually driven, recorded by a By Miles telematics device (a small plug-in unit installed in the car's OBD-II port). Miles are billed at the end of each month based on actual recorded mileage. The per-mile rate is calibrated to the policyholder's risk profile, higher-risk profiles attract higher per-mile rates.

The total monthly insurance cost is: base premium plus (miles driven in the month multiplied by the per-mile rate). For a low-mileage driver who drives 300 miles in a month at a per-mile rate of 3 pence, the variable component is £9, added to the base premium.

Target market: who benefits from pay-per-mile pricing

By Miles explicitly targets low-mileage drivers who, under standard annual mileage-banded pricing, pay premiums calibrated to assumed annual mileage that exceeds their actual use. Annual mileage banding on standard policies produces a step-change pricing effect, a driver declaring 5,000 miles per year pays a specific premium; moving to the next band (6,000 to 8,000 miles) produces a larger increment than the actual additional risk.

By Miles' per-mile model charges linearly, every additional mile costs the same per-mile rate. For drivers who drive infrequently and unpredictably, urban residents who use their car occasionally, second-car owners, drivers who work from home most of the week, elderly drivers who drive only for local journeys, the pay-per-mile model may produce a lower total annual cost than a standard annual policy with declared low mileage.

By Miles has stated, in published marketing, that the product is most cost-effective for drivers who cover approximately 7,000 miles per year or fewer. Above this level, the cumulative per-mile charge plus the base premium typically exceeds the cost of a competitive annual standard policy for the same risk profile. Drivers should compare the By Miles quote, calculated on expected annual mileage, against standard annual policy quotes for the same declared mileage before purchasing.

The telematics device and MID registration

By Miles requires policyholders to install a small plug-in telematics device in the vehicle's OBD-II port. The device records mileage for billing purposes and transmits data to By Miles via mobile network. The device does not impose curfews or mileage caps, it records mileage for billing, not for driving score calculation in the same manner as behaviour-based telematics products.

All By Miles policies are registered on the Motor Insurance Database (MID), operated by the Motor Insurers' Bureau, from the policy inception date. Roadside enforcement systems verify insurance status via MID in real time. The OBD device's presence in the port must be maintained for the policy to remain valid, check the By Miles policy conditions regarding device removal or failure.

Insurance Premium Tax at 12 percent (HMRC, gov.uk) applies to all By Miles premiums, both the base component and the per-mile billing. The tax is included in the prices quoted and billed by By Miles.

By Miles versus standard annual policies: a structural comparison

The key structural difference between By Miles and a standard annual policy is the variable cost component. Standard annual policies fix the premium for the year at inception regardless of actual mileage driven. By Miles charges variably, driving less costs less, driving more costs more.

For a driver who accurately declared 4,000 miles per year but ends up driving 7,000 (a 75 percent overrun), a standard annual policy would require a mid-term mileage adjustment and premium increase, or would constitute a non-disclosure under CIDRA 2012 if not updated. By Miles automatically charges the correct amount for actual mileage without requiring a declaration update.

BIBA-registered specialist brokers (biba.org.uk/find-insurance/) can compare pay-per-mile products against standard low-mileage annual policies for drivers considering the By Miles model.

Key Figures

Frequently Asked Questions

Is By Miles regulated by the FCA?

Yes. By Miles Limited is authorised and regulated by the FCA under FRN 769339. Confirm current status at register.fca.org.uk.

Who underwrites By Miles car insurance?

By Miles policies are underwritten by Lloyd's of London syndicates. The specific syndicate underwriting each policy is identified in the By Miles policy documentation.

How does By Miles billing work each month?

By Miles charges a fixed base premium each month plus a variable component calculated by multiplying the miles driven during the month by the per-mile rate. The base premium covers stationary risk; the per-mile charge covers driving risk.

Is By Miles cheaper than a standard annual policy?

For drivers covering approximately 7,000 miles per year or fewer, By Miles' pay-per-mile structure may produce a lower total annual cost than a standard annual policy. For higher-mileage drivers, cumulative per-mile charges typically exceed the equivalent annual premium. Compare By Miles quotes against standard annual quotes for your expected mileage before purchasing.

Does By Miles impose curfews or driving restrictions?

No. By Miles' telematics device records mileage for billing purposes. It does not operate a driving score model with curfew or behaviour restrictions. The device must remain installed in the OBD-II port for the policy to be valid.

Sources & Verification

• FCA Register, By Miles Limited (FRN 769339): https://register.fca.org.uk
• ABI Motor Insurance Premium Tracker Q4 2025: https://www.abi.org.uk
• Road Traffic Act 1988, section 143: https://www.legislation.gov.uk/ukpga/1988/52
• HMRC Insurance Premium Tax: https://www.gov.uk/guidance/insurance-premium-tax
• Motor Insurers' Bureau, MID: https://www.mib.org.uk
• BIBA, Find a specialist broker: https://www.biba.org.uk/find-insurance/
• gov.uk, Driving without insurance: https://www.gov.uk/vehicle-insurance/penalty-for-driving-without-insurance

This article is for informational purposes only and does not constitute financial advice. Always verify rates with official sources before making any financial decision.