Coverbox, www.coverbox.co.uk, one of the pioneering pay-as-you-drive car insurers, is pushing its successful younger driver insurance product into older driver and low-car-use markets – with a minimum annual mileage of 3,000 miles.
Coverbox is established as a provider of insurance for younger drivers, but Coverbox Miles will bring the established pay-as-you-drive product to more people in the full 18-85 driver market – and it will be particularly attractive to those who are using their cars less in the current economic climate, or who as a matter of course rack up relatively small annual mileages.
“The average driver is said to cover 10,000 miles a year, and many insurance policies – regardless of how many or few miles a driver covers – are based on that figure, and the risk that comes with driving that distance: so even if they drive a half or even a third of that distance, they’re still treated as being a 10,000-mile-a-year driver,”
said Johan van der Merwe of Coverbox Miles.
“Our new Coverbox Miles product has a minimum annual mileage of 3,000 – and because it’s pay-as-you-drive, and less distance means less risk, the driver pays for only the miles he or she covers. But if they have underestimated their annual mileage, then they can buy more miles to see them through the year.
“It has proved to be a very successful product for younger drivers, but we have a growing customer base of older drivers who have seen it can prove to be great value for them too. It has become a product that’s suitable for all, but tailored for each individual. Why, if somebody – regardless of age – only drives 3,000 or 4,000 miles a year, should somebody pay a premium based on the national average of driving around 10,000 miles a year?
“75% of the telematics/pay-as-you-drive market concentrates on younger drivers – but this is a product for drivers of all ages,”
said Johan van der Merwe.