You do few kilometers with your car and you want to pay less for your car insurance? The mileage package is interesting for vehicles that travel a low annual mileage, less than 10,000 km per year. You still have to choose the right contract.
Is mileage auto insurance right for you?
Insurance per kilometer is interesting if you use your car occasionally or if you have several vehicles.
You are concerned by the small rollers offers if:
- you use your vehicle for exclusively private journeys , during weekends and holidays. You go to work by public transport, bicycle, moped or have a company car. This is often the case for policyholders in large cities, particularly in Île-de-France where public transport is highly developed.
- You have a little-used extra vehicle. It can be, for example, a caravan or a van that only circulates in the summer.
- You are retired, travel little and have reduced travel.
- You are a young driver and you only hit the road at the weekend to return to your parents. For you, the advantage is even greater: you are subject to an additional premium linked to your newness.
Pay As You Drive: pay per kilometer driven
The Anglo-Saxon expression Pay As You Drive means Pay according to your driving. This is GPS-type geolocation software that the insurer installs in your car.
It measures several indicators: the number of kilometers traveled but also the time at which you take the wheel and the roads taken. Its main advantage lies in its precision.
According to insurers, the mileage report allows you to track your consumption online.
This element limits the risk of exceeding your plan. This system is developing more and more with the growth of connected objects.
The cost of installing the box is often shared between the insurer and the insured.
You will sometimes have a monthly rental to pay for the equipment.
If you are canceled by your insurer, the cost of uninstallation should be your responsibility. It oscillates between 50 and 60 euros.
Another disadvantage: your kilometers are counted, even if you are not driving but are parked on a moving object.
For example, this is the case if you are crossing the ocean by boat and your car is on the trip.
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The mileage package: what maximum annual distance to choose?
The small driver’s package, also called the mileage package, benefits drivers who travel a small number of kilometers per year.
This maximum distance varies between insurers.
It will therefore be necessary to look for an offer adapted to your situation, if you drive less than 9000, 8000, 7000 km.
Insurers can also offer reductions in insurance premiums per segment of kilometers traveled.
This system is advantageous, provided you do not exceed the mileage listed in your contract. We therefore advise you to carefully assess the distance you plan to cover during the year.
If you overestimate it, your savings will not be optimal.
If you reduce it, you risk paying an increased deductible, if, on the day of the accident, you have traveled more kilometers than expected.
Some insurers also practice a proportional reduction in the compensation paid.
Insurance per kilometer – How it works
At each contract renewal, you make a simple declaration to your insurer. It mentions the kilometers traveled in the year between each deadline.
Some insurances require you to go to a designated mechanic who reads your meter.
It is therefore he who attests to the veracity of the information.
Do you realize that you are going to exceed your mileage package?
First reflex: notify your insurer. He will offer you a change of formula or even the transition to a classic contract. This change is made for a small surcharge.
This additional cost is minor compared to the deductible you would have to pay in the event of an unauthorized excess.
The first solution costs you a few tens of euros against several hundred for the second.
Another insurance, connected auto insurance may however be of interest to you. It concerns risk-free drivers who drive little.
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The best formula to insure your vehicle for actual kilometers
The mileage insurance rates vary according to several parameters (the number of kilometers travelled, the type of car, etc.).
To find the best offer, define your maximum mileage for the year and compare the different offers as well as the guarantees offered by the insurers.
Indeed, even if some insurance contracts by kilometers rolled offer the same clauses as those of unlimited mileage insurance contracts, this is not always the case.
To find the most profitable kilometer insurance, compare the offers and do not forget to inform yourself by consulting the different opinions.
At this juncture, we hope to have provide you with the best method to pay less while driving in a long kilometer.
This will also aid at reducing expenses on your auto insurance.
Incase if you have any question or suggestion, then you can simply let us know by commenting below.