In a constantly changing world, consumption patterns and individual needs are changing. Motor insurance is no exception to this trend and now offers innovative solutions adapted to the new behavior of drivers. Insurance per kilometer, also called “pay as you drive”, is part of this dynamic by offering a flexible and economical alternative to traditional insurance. Understanding how it works, its advantages and its limits allows motorists to make an informed choice and take full advantage of the benefits of this insurance formula in line with their lifestyle.
Car insurance per km: economical and ecological
The main advantage of kilometer insurance is its cost. Indeed, unlike conventional insurance, this formula allows you to save on monthly or annual premiums by paying only for the kilometers actually travelled. This financial flexibility particularly benefits drivers who do not drive a lot and can thus make significant savings on their car budget.
Kilometer insurance offers several other practical benefits. First of all, it is suitable for all types of driving: whether you use your car every day to go to work or only on weekends to go for a ride, this insurance is made for you. You are covered and can drive with complete peace of mind without having to pay too high a fixed premium.
How to find good scooter insurance to protect yourself from accidents?
It should be noted that taking out car insurance per km often guarantees additional services such as 24-hour breakdown assistance or even free reimbursement when an incident occurs even though the maximum number of authorized kilometers has been reached.
Signing up for per-kilometre insurance is relatively simple: just contact an insurer offering this formula and provide information about your car and your driving habits. The insurer will thus be able to offer you an adapted offer according to the estimated number of kilometers that you will travel during the year.
Depending on your profile and the model of your car, some insurers can also offer advantageous rates with their “third-party payment” insurance. This will in particular allow novice drivers or those with an old vehicle equipped only with the compulsory legal minimum (the French equivalent of third-party payment) to benefit from essential guarantees such as that which covers civil liability, etc.
How car insurance by the mile works
The insurance premium per kilometer is determined according to the number of kilometers you plan to travel in the year. More specifically, when you subscribe to this insurance formula, your insurer sets an annual flat rate which corresponds to a certain number of kilometres. If you ever exceed this limit (for example 10,000 km per year), you will have to pay an additional sum to cover the costs related to the excess kilometers .
Let’s take a concrete example: if you choose car insurance per km with a maximum annual package of 8,000 km and you end up only driving 7,500 km over the year, the total amount of premiums paid will be adjusted accordingly so that you can recover the unused part. The more moderate your driving, the less you pay for your car insurance.
To choose the insurance per km that best suits your needs, think carefully about your use of the car as well as your annual budget for car insurance costs. By taking these essential elements into account, you will be able to opt for a suitable and economical formula.
How to take out car insurance per km
Buying car insurance by the kilometer is usually done online or over the phone, depending on the insurer chosen. The formalities are the same as for any other car insurance formula: you must provide your personal information and the specifics of your vehicle.
To obtain an accurate estimate, remember to communicate the exact number of kilometers traveled each year as well as the nature of the journeys made (home-work journey, professional use, etc.). Once this information has been collected, the insurer will be able to calculate the total amount of annual premiums that will perfectly match your needs.
Car insurance per km offers interesting advantages to drivers who use their vehicle in moderation. To choose the best formula adapted to your personal or professional needs, remember to compare the different contracts available on the internet or from an insurer specializing in this field.
Car insurance per kilometer is an attractive alternative to more traditional formulas, in particular all-risk insurance , which offers comprehensive and expensive coverage for regular or occasional drivers. Indeed, it allows savings on the annual amount of insurance premiums .
The main difference between these two formulas lies in the pricing: while all-risk insurance will charge a fixed amount each month regardless of the number of kilometers traveled by its vehicle, insurance per km applies a proportional rate according to the number total kilometers traveled each year.
This form of insurance can also be distinguished from the third-party payment formula . The latter only allows its holders to benefit from minimal protection against certain damages caused to others (bodily injury and property damage). However, it does not cover damage to one’s own vehicle in the event of an at-fault accident . The subscriber must therefore bear the financial costs of repairing it himself.
Therefore, if you own a small van or use your car very infrequently (think for example of people living in a dense urban environment without an absolute necessity or desire to own a car), opt for car insurance at kilometer may be wise. You will thus have the possibility of making savings on the annual amount of insurance premiums , while benefiting from coverage adapted to your real needs.
Remember to choose your car insurance carefully according to your own needs and uses. If you drive few kilometers each year, insurance per km may be an interesting option for you. Do not hesitate to compare the different contracts available in order to find the one that will perfectly correspond to your personal and professional situation.