I don’t drive much: find the right insurance
Relatively recently, per-kilometer auto insurance plans are an excellent alternative for drivers who rarely use their vehicle. If all of your trips do not exceed a certain distance each year, you can benefit from a reduced contribution. Find out how it works.
Car insurance can quickly get expensive even if you are satisfied with a basic warranty. Moreover, the price of insurance tends to increase every year. This situation is all the more difficult to accept for small drivers or motorists who drive very little and who despite this must pay as much as people using their vehicle on a daily basis..
Who is considered a small wheeler ?
Being a small rider allows you to benefit from attractive rates for your car insurance, without neglecting the guarantees allowing you to ride with confidence. Know that you are considered a small wheeler in the following cases:
- you are a young driver;
- you regularly use public transport;
- you only use your car for short journeys such as the distance between your home and your place of work;
- you are retired.
What is kilometer insurance ?
As its name suggests, this type of insurance depends on the number of kilometers traveled. The mileage package determines the amount of the car insurance premium on the number of kilometers you cover in a year. A car insurance by the kilometer generally establishes a flat-rate kilometer included between 4,000 and 9,000 km. By subscribing to such a contract, you can make savings ranging from 10 to 30% compared to a classic plan. The principle is simple: you pay a contribution proportional to the actual use of your vehicle. In other words, it allows you to pay less when you ride less..
Auto insurance by the kilometer is an advantageous system where everyone finds their account. As far as the insurer is concerned, there is less risk for a vehicle that drives less to be a victim or to cause a loss. The mileage packages precisely encourage the insured to use his vehicle as little as possible and to favor public transport. From the point of view of the insured, allows to pay a lower insurance premium than for conventional insurance, which avoids spending unnecessarily on guarantees that are not necessary. This is also the most relevant option insofar as a return of COVID-related health restrictions is to be feared due to the upsurge in new positive cases in recent times.
Remember, however, that the fact of not having driven at all for a year does not mean that you will not have to pay a premium. In this case, you will have to pay a minimum amount. Indeed, your vehicle continues to represent risks, even if it runs very little, such as fire and car theft, even if it is parked or remains in a garage for a long time. And these must be covered.
The different types of packages per kilometer
In order to pay less contributions as a small wheeler, you will have the choice between three types of car insurance.
The formula with mileage package
This is the most popular and oldest form of small wheeler auto insurance. This contract undertakes the insured not to exceed a certain number of kilometers for one year. In order to ensure proper compliance with this commitment, the insurer generally invites the insured to take an annual reading of the odometer from a partner garage. However, some insurers are satisfied with a simple sworn statement on the part of the insured..
PAYD insurance (Pay as you drive)
The Pay as you drive or pay as you drive formula appeared recently and is still very rare, especially for ethical reasons. This innovative formula is imported from Anglo-Saxon countries where it is very popular. PAYD insurance allows you to pay contributions depending on the actual distance traveled. To be able to take out this contract, you need to agree that the insurer installs an electronic box in your car. This equipment will allow geolocate your vehicle and calculate the distance traveled. This data will be transmitted in real time to your insurer. Installation of the housing is free. However, in the event of termination of the contract, you must bear the cost of removing the box, which amounts on average to 60 euros..
Third party insurance
Be aware that there are third party insurance formulas adapted to small riders. This type of formula guarantees at least automobile civil liability, which makes it possible to cover bodily injury and material damage caused to others in the event of a responsible accident. Like the other two types of small wheeler insurance plans, third party insurance allows you to pay lower premiums while remaining insured for basic guarantees.
Do not hesitate to go to online insurance comparators to find the best small wheeler insurance offers. You can also request quotes directly from insurance companies to decide for yourself the type of contract best suited to your needs and your budget..
What happens if the authorized distance is exceeded ?
When taking out insurance with a mileage package, you must pay particular attention to the kilometers traveled during the year. In the event of a slight overtaking (not beyond a few tens of kilometers), your insurer will not hold it against you. However, you will be required to notify your insurer as quickly as possible in the event of a significant excess..
Be aware that you may then switch to a more standard plan, which will have a considerable impact on the amount of your contributions. Some insurers offer formulas allowing to increase the mileage package during the years, which allows you not to reach a classic formula in case of exceeding.
If you opt for a PAYD formula, you will not be limited by any package since you pay according to what you ride.
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