In recent years many insurance companies have proposed new car insurance formulas for your vehicle: the insurance per kilometre. With the key to a promise: saving every year. So, is this the best formula?
Car insurance per kilometer or small driver
Car kilometer insurance like the one offered in Belgium by Corona Direct Assurances allows you to pay according to your actual mileage. A formula that is detached from the standard package practiced, and which tends to emerge more and more.
At first, the motorist tells his insurer what his annual mileage will be. At the end of a year he will have to declare the mileage achieved by his car.
If the mileage is less, the policyholder is reimbursed for the kilometers not driven! This may surprise you to receive a refund from your insurer without having suffered a claim.
However, if the mileage is higher, an additional fee will have to be paid.
This formula may therefore be suitable for those who drive less than 15,000 kilometers a year. And even if you drive a lot each year, there’s no guarantee you won’t drive less the following year. The example of the 2020 lockdown is obvious: motorists mostly found themselves at home, without the possibility of a car except for basic necessities.
Some insurers even go beyond the simple declaration of the insured: to track the mileage of their customers, they install a box in the car that transmits the mileage directly to them.
Liability insurance or all risk?
Whatever your mileage, in most cases it will also be possible to choose its formula: civil liability or all risks for France, but also civil liability, small omnium or full omnium in Belgium.
Civil liability is mandatory and essential for any car that is registered and likely to circulate. Even a car that has never been used cannot be canceled by its owner with the insurer: the risk of theft, for example, and damage caused to third parties remains.
For a car that you drive very little and whose value is a few thousand euros, you can choose basic car insurance to save money. This civil or third party liability insurance will therefore cover damage caused to a third party, be it a cyclist, a motorist or a homeowner if you operate and damage his gate…
With all risk car insurance the big difference is that you are covered for material damage to your car, even if you are responsible for the accident, these more complete formulas also cover theft and fire, not always taken into consideration with the basic vehicle insurance.
If you own a car of a certain value, it will therefore be more than advisable to opt for an all risk formula. Thus you will avoid a substantial financial loss in the event of a disaster!
Before choosing an auto insurance company, compare offers by requesting quotes from different insurers. This will always be the starting point for savings before taking out mileage insurance.
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