2026 car insurance tech: pay-per-mile, app tracking and speed camera data explained
Maybe you now work from home most of the week, or you only drive at weekends, yet your insurance still feels priced for a daily commute. Insurers are rushing out new tech-based policies that charge by the mile, track how you drive via your phone, and even factor in how you behave near speed cameras. Understanding what is actually being measured – and how it changes your premium – is becoming as important as comparing prices.
In simple terms, pay-per-mile and app-based policies use telematics, which is technology that records how, when and where a car is driven. It usually works through either a plug-in device, a black box or a smartphone app, which then sends driving data back to the insurer.
Pay-per-mile policies
Pay-per-mile insurance replaces the usual flat annual price with a smaller base fee plus a charge for each mile driven. The idea is that someone doing under roughly 5,000–6,000 miles a year should pay less than a high‑mileage driver with the same risk profile.
Most products have two parts: a fixed monthly cost that keeps the car insured even when parked, and a variable cost that counts every recorded mile. The per‑mile rate is often only a few pence, but it can change if your risk rating changes, for example after an at‑fault claim or a run of poor driving scores.
These policies suit people with predictable low mileage: remote workers, multi‑car households, or those mainly using public transport. They are less attractive if your mileage varies a lot, you regularly do long trips, or you forget to update the insurer when your annual estimate changes, which can trigger adjustments or extra charges.
App tracking and driving scores
Many 2026 policies now rely on a smartphone app rather than a hard‑wired box. The app uses GPS and motion sensors to monitor speed, acceleration, braking, cornering and the times of day you drive, then turns this into a driving score that can move your premium up or down.
Insurers tend to reward: smooth acceleration, gentle braking, sticking close to the limit, and avoiding late‑night weekend driving. Harsh braking, phone use while moving, frequent speeding or aggressive lane changes can all hurt your score. Some drivers see savings in the region of 10–25% when they consistently score well, but others find that a few bad weeks can remove the discount at renewal.
There are trade‑offs. You need your phone with you and charged, with location access enabled, or journeys may be mis‑recorded. You are also handing over detailed movement data, sometimes including where you park overnight and your regular routes, so it is worth reading how long data is stored and whether it is shared with third parties beyond claims handling and pricing.
Speed cameras and your data
A common worry is that insurers get live speed camera feeds and automatically penalise you for every flash. In reality, insurers do not normally have direct access to enforcement camera systems, although they will see endorsements on your licence when they run standard checks.
Where speed cameras do matter is through mapping and telematics data. Many apps have maps of permanent camera locations and known high‑risk roads, and they compare your speed with the posted limit rather than waiting to see if you’re fined. Regularly driving 5–10 mph above the limit, especially in 20–30 mph zones, can drag down your score even if you never receive a ticket.
Repeated speeding in telematics data can lead to higher premiums, loss of discounts or even cancellation, depending on the insurer’s tolerance. On the flip side, careful driving near schools, roadworks and known enforcement stretches is often rated positively and can help offset the extra cost of motoring in general.
Checklist
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Work out realistic annual mileage and compare a pay‑per‑mile quote with a standard policy on the same cover level.
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Ask exactly which behaviours affect your score (speed, time of day, routes, phone use) and how quickly prices can change.
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Check how journeys are recorded if someone else drives your car, or if you travel as a passenger with your phone.
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Read the data policy: what is collected, how long it is kept, and whether it is used for anything beyond insurance.
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Confirm what happens after a claim or speeding conviction – will you lose all telematics discounts at the next renewal?
Used well, these new tools can cut costs for light‑mileage and careful drivers while nudging safer habits. Before signing up, decide how much monitoring you are comfortable with and whether the potential savings justify the data you hand over.