By Miles Offers New Tesla Insurance Service That Could Be Cheapest Yet

U.K. car insurance provider By Miles is dropping the old insurance policies to make way for something that goes hand in hand with the changes in technology.

As the U.K. market is warm on electric autos, especially the Model 3 of Tesla, By Miles is launching what it calls a "connected car" insurance policy along with the American automotive company, TechCrunch first reported.

By Miles tweeted on Monday, "@elonmusk, we launched the world's first Tesla car insurance policy that uses real-time data for pricing. Glass repair excess is only £25. You never know..."

Digital insurer La Parisienne Assurances (backed by Swiss Re) is also joining the partnership as the new policy will be the first car insurance policy in the world to take data from the car without any "black box."

"We are proud to launch with @bymiles the world's first connected car insurance policy, for @Tesla. The information about the distance driven is directly taken from Teslas without any 'black box' to price the usage-based insurance," La Parisienne Assurances tweeted.

The new policy will also target Tesla owners who drive less than 7,000 miles per year and would allow them to save on annual insurance costs. Similar to By Miles's existing service where policyholders pay by the miles, Tesla owners can monitor what they have to pay via the By Miles app.

Apart from providing a cheaper solution to Tesla owners, the policy also covers "damage or theft of charging cables and accessories" and guaranteed repairs for five years at approved Tesla garages. In case of theft, By Miles claimed that it can track down the vehicle quickly.

Olivier Jaillon, the chief enablement officer of La Parisienne, told Verdict, "We're delighted to be partnering with By Miles to launch the world's first connected car insurance policy, and we're thrilled to be launching a policy that gives Tesla owners a chance to lower the cost of their car insurance."

"As an industry leader in innovation, we need to stay ahead of the game and create the insurance of tomorrow. Working with By Miles to create a really impactful and transparent product that will change the insurance landscape just made sense," he continued.