THE ACTUARY LENS

Pay Per Mile

When does mileage improve motor insurance pricing?

Usage & risk: 2023–2025MOT cohort: December 2024–December 2025Published: 22 Sept 2026Evidence dates & sources

Mileage improves the exposure denominator. For high-intensity books, time, road, purpose and occupancy determine the risk carried by each mile.

7.9×Mileage spread · P90 ÷ P10December 2024–December 2025 6Selected products1 UK entries · global comparison 4Commercial examplesPricing mechanisms assessed separately

What changed

The product directory now distinguishes availability, source evidence, scale and financial outcomes. Products and downloads use the release shown below.

MOT evidence record: 19 Sept 2026. 1,268,479 vehicles matched across December 2024–December 2025.

PRODUCT DIRECTORY

Compare pay-per-mile products

Selected coverage. A missing provider does not mean its product is unavailable. Status reflects each entry’s evidence date.

RegionPricing modelAvailability

1 of 6 selected products · UK view

Download full directory

United Kingdom

By Miles

Run-off · no new/renewalTrue per mileEvidence record 19 Sept 2026

Fixed charge: Base premium
Mileage charging: pence per mile
Daily mileage cap: Not recorded in this evidence entry
Measurement: Plug-in tracker or connected car

Availability: Run-off · no new/renewal
Source evidence: Primary company disclosure
Commercial scale: Almost one billion miles covered since launch in 2017; profitability not disclosed
Financial outcomes: Profitability not established by this evidence entry

Published outcome: Portfolio in run-off · no new or renewal quotes

New-customer quotes stopped 26 November 2025 and renewal quotes stopped 6 January 2026. Existing policies remain valid and serviced until their individual expiry dates.

Source accessed: Not recorded · Scheduled source check: Not recorded

Primary product evidence

Availability, source evidence, commercial scale and profitability answer different questions. An acquisition, run-off or customer saving does not establish underwriting profitability.

MILEAGE & RISK

How consistent are mileage differences?

Annual car mileage · England · 2023–2025. Compare every available year, or switch to the latest snapshot.

Fuel type

All fuels · 2023–2025

Miles per car per year

PetrolDieselHybridBattery electric

Observed annual mileage · England · 2023–2025
Fuel	2023	2024	2025
Petrol	6,100	6,200	6,200
Diesel	8,300	8,300	8,000
Hybrid	8,300	8,000	8,100
Battery electric	Not published	8,900	9,400

Observed · DfT NTS0901. The 2025 collection mode changed; results remain survey estimates. “Suppressed” means the sample was too small for a reliable published value.

Methods, periods & sources

Annual car mileage by fuel

Observed · 2023–2025 · England

Numerator: Estimated annual miles
Denominator: Cars in NTS sample

Survey estimate. Battery-electric results before 2024 were suppressed for sample quality.

Department for Transport · NTS vehicle mileage and occupancy

How mileage and context affect premium

Base risk + miles driven × risk intensity

Base risk: Theft, fire, weather, administration, assistance and capital do not disappear while a vehicle is parked.
Distance: Distance converts a vehicle-year into observable road exposure and rewards genuine low use.
Risk intensity: Road class, time, purpose, passengers, vehicle and territory alter the risk carried by each mile.

STATS19 is road-safety evidence, not insurer claims experience. Aggregate comparisons can support segmentation tests; they do not establish causality.

RISK CONTEXT

When and where miles are driven

Great Britain · 2023–2025. Police-reported injury collisions and traffic exposure; these are not insurer claim rates.

Collision-to-flow index across years

2023–2025 · Great Britain · all hours = 1.00

Index and KSI explained

The index is collision share divided by traffic-flow share. KSI means killed or seriously injured. The percentage describes severity within the recorded injury collisions, not the probability of a claim.

Fri/Sat social · 19:00–24:00

20231.57×27.7% KSI

20241.57×29.4% KSI

20251.58×29.2% KSI

Higher collision-to-flow index in each year

Overnight · 00:00–06:00

20231.67×30.8% KSI

20241.58×30.1% KSI

20251.53×32.1% KSI

Higher collision-to-flow index in each year

Weekday peaks

20231.00×21.5% KSI

20241.01×22% KSI

20251.02×23.9% KSI

Stable around average

Weekday daytime

20230.88×22.9% KSI

20240.88×23.6% KSI

20250.90×25.2% KSI

Below-average index in each year

Weekend daytime

20230.86×25.2% KSI

20240.86×26.8% KSI

20250.85×27.9% KSI

Below-average index in each year

Collision share ÷ traffic-flow share, calculated independently for each year. Indicative exposure signal; not an insurance claim rate.

Methods, periods & sources

Collision-to-flow time index

Derived · 2023–2025 · Great Britain

Numerator: Share of injury collisions in time band
Denominator: Share of DfT traffic-flow index

Relative exposure signal; not an insurer claim rate or a direct per-mile estimate.

Department for Transport · Road safety open data · STATS19 Department for Transport · Road traffic estimates · TRA

MOT EVIDENCE LAB

Mileage spread and repeatability

Great Britain · December 2024–December 2025. Official DVSA anonymised test results, using the latest normal test per vehicle.

1,268,479Matched vehicles

7.9×P90 ÷ P10 interval mileage

45.0%Share of miles driven by the highest-use 20%

Annualised mileage between tests

December 2024–December 2025 · 1,268,479 matched vehicles

Percentiles explained

P10 is the mileage at or below which 10% of vehicles fall. The median divides the cohort in half. P90 is the mileage at or below which 90% of vehicles fall.

P101,748miles per year

Median5,981miles per year

P9013,803miles per year

There is a 7.9× difference between the 90th and 10th percentiles of annualised mileage in this cohort.

Derived from odometer change, annualised for test intervals of 300–430 days. Normal tests only; latest test per vehicle; 100–100,000 plausible annual miles retained.

Methods, periods & sources

MOT matched-cohort interval mileage

Derived · December 2024–December 2025 · Great Britain

Numerator: Odometer increase annualised to 365.25 days
Denominator: 1,268,479 vehicles matched across monthly extracts

December cohort only. Test interval restricted to 300–430 days and plausible annual mileage to 100–100,000 miles.

MOT segment persistence

Derived · December 2024 and December 2025 · Great Britain

Numerator: Median lifetime annualised odometer mileage by class or fuel
Denominator: 2,179,376 valid vehicles in Dec 2024; 2,232,911 in Dec 2025

Lifetime annualised mileage is a repeatability check. Broad MOT classes cannot isolate taxi, small van or people-carrier use without further classification.

DVSA · Anonymised MOT test and result data

Coverage and location limits

Observation window: December 2024 and December 2025 monthly DVSA result extracts.
Validity rules: Latest normal test per vehicle; annualised mileage between 100 and 100,000 miles.
Geography: Great Britain tests. Station postcode area is not used as policyholder location.
Interpretation: December cohort evidence, not a full-calendar-year national estimate or insurer claim outcome.

The postcode area identifies the test station—not the keeper. Rural, city and transport-access comparisons require validation.

Download MOT evidence

COMMERCIAL & SUITABILITY

What commercial experience demonstrates

Separate product adoption, customer savings and safety reports from insurer profitability. Evidence record 19 Sept 2026.

Pricing mechanism

United States · Haulage

HDVI

True per mile

Pricing basis: Miles driven + telematics context
Reported scale / adoption: Risk models trained on 3.5bn Class 8 truck miles
Published outcome: Average customer premium saving above 7%; safest fleets above 10%. HDVI reports 95% reduce speeding or hard braking within the first policy year.
Evidence relationship: Direct evidence · Provider-reported

Evidence record 19 Sept 2026 · Source check Not recorded

Primary source

United Kingdom · Courier / delivery

Zego Delivery

Time-based

Pricing basis: Per working minute · one-hour minimum
Reported scale / adoption: 43,000 active PAYG customers; 64,000 delivery workers served
Published outcome: Sustained adoption demonstrates that commercial drivers will buy variable-exposure cover. No loss-ratio result is disclosed.
Evidence relationship: Adjacent evidence · Provider-reported

Evidence record 19 Sept 2026 · Source check Not recorded

Primary source

United Kingdom · Taxi / PHV

Zego Private Hire

Telematics-adjusted

Pricing basis: 30-day or annual cover + behaviour-adjusted renewal
Reported scale / adoption: More than 100,000 unique private-hire customers
Published outcome: Sense offers a 17% upfront discount and experience-rated renewal pricing. This supports UBI, but is not pure per-mile cover.
Evidence relationship: Adjacent evidence · Provider-reported

Evidence record 19 Sept 2026 · Source check Not recorded

Primary source

United Kingdom · Mixed commercial fleets

Flock

Telematics-adjusted

Pricing basis: Annual fleet premium + mileage, journey risk and rebate
Reported scale / adoption: Courier, haulage and taxi appetite; 100+ telematics integrations
Published outcome: Premium rebates up to 10% depend on driving behaviour, claims reporting and loss-ratio health. Audited portfolio outcomes are not disclosed.
Evidence relationship: Adjacent evidence · Provider-reported

Evidence record 19 Sept 2026 · Source check Not recorded

Primary source

Product operation and adoption are observable. Published savings and safety results are provider-reported; audited loss ratios, combined ratios and profitability by pricing mechanism are generally not disclosed.

Download commercial evidence

INSURANCE SEGMENTS

Where mileage pricing may be useful

Theoretical suitability is an actuarial assessment. The evidence below states what has been observed.

Insurance segment

Taxi / PHV

Assessed suitability: Very high

Base + mile, time, road and occupancy signals

Large mileage dispersion and passenger-rich, time-sensitive exposure.

Mileage variation: Wide
Variation in driving context: Very high
Observed evidence: Telematics adoption reported at scale; pure per-mile outcome evidence remains limited.
Data needed: Verified mileage, operating hours, road mix and passenger proxy
Pricing caution: Licensing and platform data can change driver behaviour and selection.

Assessment evidence record 19 Sept 2026

SOURCES & METHODS