Pay-per-mile motor insurance provider, By Miles, has launched a motor insurance cover designed specifically for Tesla drivers who drive under 7,000 miles a year. The policy is underwritten by La Parisienne Assurances, backed by Swiss Re.

The product uses data taken directly from the vehicle to calculate the price paid each month, and does not require the installation of a telematics box. The UK insurtech said this was the world's first connected car insurance policy.

Tesla owners can activate the policy by connecting the car with their By Miles account. A smartphone app enables policyholders to see the cost of each day’s miles. Coverage includes items specific to electric cars, such as charging cables and electric car batteries.

Co-founder of By Miles, James Blackham said that electric and connected cars are the future.

“We’re confident our world-first policy will form the future of car insurance – usage-based policies that adapt to the specific needs and risks of each driver,” he added. “It won’t be long before we’ll be offering different rates for when a human is driving compared to when the car is driving itself.”

Head of brand, communications and product at By Miles, Oliver Baxter told Insurance Today: “Tesla made sense as the first manufacturer to build support for, for various reasons.

“Tesla drivers aren't well catered for by traditional, old fashioned car insurers in the UK,” he added. “We're keen to encourage cleaner driving, and the policy rewards people that drive electric cars – and people that drive less. Also, we were able to take advantage of the Tesla API to get the mileage, something not all car manufacturers are offering just yet”

Baxter explained: “We are planning on expanding the policy to other electric car models, that is something we are working on now.”

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