Car insurance by the mile, insuring yourself according to your needs

While the average distance travelled by the French is 12,000 km per year, it is clear that not everyone uses their car in the same way. And yet, we notice that most of the drivers are unaware of the existence or the functioning of specific insurances for the people who would have a mileage consumption lower than this average for multiple reasons (collector car, student…). This insurance is called « car insurance by the kilometer » and is still very little used by people who occasionally use their vehicle, even though it could allow them to save up to 40% on their insurance premium in some cases.

The two possibilities to insure by the mile

Why pay full insurance if you only use your vehicle for short distances? It is from this problem that car insurance companies have decided to launch specific contracts to give users the possibility to pay their insurance only according to the distance actually driven.

There are currently two cases with regard to the insurance per kilometer:

The package

First of all, the insurance per kilometer which will be set up on the basis of a fixed kilometer, i.e. on the definition of a pre-established distance that you will have to inform to your insurer. This is a number of kilometers that you commit to your insurer not to exceed, thus allowing you to obtain a reduced insurance rate.

If you drive more than you planned, then you will face a premium that you will have to pay. To summarize, either you exceed your mileage allowance and pay some sort of surcharge, or you do less than expected and then you can use your credit for next year’s mileage.

Pay as you drive

It can be difficult to define with precision the number of kilometers that you will make over a year. That’s why there is an alternative to flat rate mileage for this type of car insurance: « Pay as you drive » insurance. This type of insurance allows you to not pay for insurance over a year but to pay for it based on your live mileage. However, you must install an electronic box in your vehicle that will send the number of kilometers driven directly to your insurer, who will then be able to determine the amount to charge you according to the data he has collected. This formula can be interesting in the case where you have an anarchic use of your vehicle and you do not wish to commit yourself to pay for a year.

It should be noted that this type of car insurance contract by the mile works in the same way as a classic car insurance contract. You can thus have extended guarantees or even opt for an all-risk contract or be covered by a third party. You simply need to have a good knowledge of your travel habits or in which case set up a box that will allow you to be transparent with your insurer.

For this type of insurance, you should know that the price will be on average between 0.010€ and 0.040€ per kilometer. Please note that if you choose to install a box, most insurers will charge you for uninstalling it.

How do you find the right insurance for your money?

To find the car insurance per kilometer that suits you best, you should know that this is a formula that is now widely used by most insurers (Macif, Assuréo, Euro Assurance, Eurofil, All Assur…). Therefore, don’t hesitate to shop around, for example by consulting an online car insurance comparison by the mile to get a more global view of the rates charged on the market and the possible guarantees. You will have the possibility to make a quote directly on the website of the concerned insurer (the answer is generally 48 hours maximum) or by using a comparison website specialized in car insurance.

You can also contact your insurer to see what they offer in this regard. Don’t hesitate to do your own investigation by consulting certified consumer review sites or by contacting the insurance company you are interested in directly to ask your questions. This will give you the opportunity to test the customer service, the quality of which is an essential factor when using this type of insurance.

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