RAC offers innovative new Pay-by-Mile car insurance
As such, RAC is offering a flexible monthly subscription-based product for those who drive less than 6,000 miles annually (approximately 110 miles per week).
Similar to other innovators in the space, such as , the company will charge a one-off ‘activation fee’ of £50, an affordable monthly ‘standing fee’, and then add a small per-mile cost for the distance actually covered. The service is not bound by a contract and can be cancelled at any time.
Innovative new technology
What makes RAC’s offering unique is its ‘drive tag’ - a small device that adheres to a car’s windscreen to measure mileage and calculate costs. Users connect their tag to RAC via a smartphone app.
The Pay-by-Mile service is available if the driver:
- Is over 21
- Travels less than 6,000 miles per year
- Has been a UK resident for more than five years
- Has an Android v.8 or iPhone IOS v.13 model (or above)
“Car insurance is a market that’s been ripe for a shake-up for some time, so we’re thrilled to introduce a truly pioneering new product which is ideally suited to drivers who don’t do that many miles,” said Mark Godfrey, Managing Director of RAC Insurance.
“So many of us are driving fewer miles now, which means we might well be frustrated at how much we’re having to pay for car insurance. With our fast and hassle-free online quote process, it’s easy for drivers to see if they could start saving money with Pay by Mile.”
Partnering on a new type of cover
Clive Upton, Head of Standard Private Car for LV= Broker, said, “We know customer needs are changing when it comes to car insurance, with fewer miles being driven and the need for more flexible cover that suits different lifestyles. By utilising new technology, this will provide transparent value for the exact number of miles driven.”
"We are excited about the launch of this innovative programme with the RAC and look forward to deepening our partnership with them,” added Nimesh Patel, CEO of Wrisk.
Image credit: RAC
Startup spotlight: SIMON adds Nationwide to its platform
Headquartered in New York, SIMON has a singular goal: transforming the digital experience for financial advisors and unlocking greater levels of service for their clients. It achieves this through:
- A comprehensive platform featuring a full suite of digital tools
- On-demand education
- An “intuitive” marketplace
- Real-time analytics
- Lifecycle management
The company’s fusion of cutting-edge tech with leading expertise is resulting in a new industry standard, one that is simplified, codified, and consolidated within a single ecosystem.
Creating value for financial advisors
At the time of writing, SIMON works with over 85,000 finance professionals who collectively manage more than US$3tn in assets.
The startup’s solutions include:
- Spectrum: A multi-dimensional framework that quantifies the risk profile of investments using five metrics - protection, upside, liquidity, simplicity, and history
- An investment platform: Featuring risk management tools, over 90 educational videos, inclusive product training, a compliance tracker, and more.
- Analysis tools
Furthermore, SIMON’s quality as an organisation is attested by both its awards (such as being listed among the NYC Annual Awards’ ‘Best Places to Work’ category) and the status of its investors. So far, these include Barclays, JPMorgan, Prudential, Goldman Sachs, HSBC, and others.
Another high-profile name has now been added to SIMON’s list of associations: Nationwide. The Fortune 100 US insurance firm has been added as a carrier to SIMON’s marketplace. Nationwide, which is almost a century old, is an ideal fit for an insurtech focused on delivering broad solutions and expertise in a rapidly evolving sector.
Protecting peoples’ financial futures
Regarding this latest partnership, Scott Beshany, Chief Distribution Officer at SIMON, said, “Nationwide has an incredible history of innovation and advocacy and we couldn’t be more thrilled to collaborate with their team and make their products available in our Marketplace.
“Both firms are strongly aligned in the value we seek to create for financial professionals. SIMON’s dedication to delivering intuitive technology that builds simplicity and transparency around annuity offerings supports Nationwide in its mission of helping people prepare for and protect their financial future.”
Craig Hawley, Head of Annuity Distribution at Nationwide, expressed similarly positive sentiments about the collaboration:
“Nationwide has a decades-long track record of incorporating smart technology into the financial professional’s day-to-day workflow. This is another big step forward in that effort, with a proven, innovative partner at our side.
“With SIMON’s platform, financial professionals can seamlessly integrate a range of annuities into their holistic planning process, creating greater efficiencies for their practice and a more comprehensive wealth management experience for their clients.”
Images sourced from respective companies