Working from home, or telecommuting, has become the norm for many of us, with significant numbers of people expected to adopt hybrid working methods in the future. In the United Kingdom, it was reported that teleworking represented a reduction of 885 million kilometers in the distances traveled weekly by motorists.
For insurers, the kilometers traveled are a key factor. Ford is now working in partnership with UK insurance provider “pay-by-myle” (“cost per km”) By Miles, with the aim of providing cost savings for all those who no longer use their car for daily commuting, or who have substantially reduced them. Using data from vehicle connectivity systems, Ford customers can benefit from a “pay-per-drive” approach, with potential associated savings.
“The way we travel or move around has undergone a huge change that may well have a lasting impact. We want to defend the changing needs of motorists who continue to work from home”, said Mark Harvey, Director of Business Connectivity, Ford of Europe. “Working closely with By Miles, our aim is to use data from connected vehicles to help provide our customers with a full suite of innovative new products and services”.
Insurance products that take into account the actual distance traveled – rather than the predicted distance – often depend on the installation of a device plugin. For Ford and By Miles customers, the information will come directly from the in-vehicle modem, FordPass Connect. No additional device is needed.3
Customers register online and the policy is activated by simply accepting a notification on the vehicle screen to share your distance data. Owners are empowered to manage the sharing of vehicle data and can control who they want to share it with and for what purposes.
According to the financial analysis website Finder, 51% of consumers could save £257.97 (equivalent to around €300.00) on their car insurance by taking out a policy with By Miles.
“The way insurance works may not work for everyone. Whatever the shape of the new normal looks like, it’s clear that the needs of motorists are rapidly changing – and people want fairer and more flexible coverage that reflects that.”, stated James Blackham, CEO and founder of By Miles. “We are very pleased with our collaboration pay-by-mile with Ford, which will offer motorists a reliable and connected alternative to traditional car insurance”.
The collaboration with By Miles, which will be fully available later this year, is the first of several partnerships to be announced across Europe made possible by the Ford technology of connected Ford vehicles.