Insurance companies offer customizable contracts to best meet customer requirements. For example, for small car drivers, they can turn to mileage insurance. But what is this? How does it work? Does this option really reduce the insurance bill?
How does mileage insurance work?
Automobile mileage insurance is coverage that is calculated based on kilometres driven. The driver therefore only pays for the number of kilometres actually driven. To do this, an electronic box with a GPS will be installed in the vehicle which will be used to transmit the number of kilometres to the insurer. This makes it possible to benefit from a more attractive premium.
Companies generally offer two types of insurance per kilometre. On the one hand, with kilometre-based insurance, you only pay for the kilometres driven to the nearest kilometre. On the other hand, there is the flat-rate per kilometre insurance. The premium will be calculated on the basis of a fixed rate. In any case, in both cases, if you exceed the limit, you are exposed to a fairly substantial premium surcharge.
What are the guarantees of an insurance per kilometre?
The automobile insurance per kilometre offers similar formulas to a classic insurance: third party insurance, comfort insurance and all-risk insurance. Thus, you can benefit from more or less coverage depending on your budget. Third party liability insurance is the legal minimum. It only covers material damage and bodily injury caused to third parties in the event of an accident. Comfort insurance allows you to modulate the options according to your real needs: breakdown assistance, driver coverage, theft and fire insurance, etc. And the all-risk insurance is the most comprehensive. The only difference is that thanks to the box, in the event of theft, it is possible to easily trace your vehicle.
What is the price of a car kilometer insurance?
The insurance company offers tailor-made offers according to the number of kilometres travelled, the value of the vehicle, the profile as an insured, the risks and the levels of cover chosen. And the premium can be significantly increased depending on the amount of the deductible. In any case, to find the best car insurance per kilometre, it is strongly recommended to compare offers. However, it is not so easy to ask for personalized quotes when looking for a car insurance company. To save time, it is preferable to use an insurance comparator. This tool is easy to use, independent and totally free. In just a few minutes, you can find the best coverage at a cheap price.