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How to insure a car per kilometer?

If you ride very little, you run less risk than if you ride longer distances, it makes sense. And, that’s why your insurer can offer you this type of car insurance formula per kilometer. Thanks to this type of formula, you can obtain a substantial reduction in the price of your insurance premium without sacrificing anything to your level of guarantee.

What is car insurance per kilometer?

As its name suggests, car insurance per kilometer, also known as “Pay as you drive” for “Pay as you drive” in French, is a car insurance formula that allows you to pay a premium car insurance adapted to the number of kilometers that you will actually travel with your vehicle. 

There are two main formulas of car insurance per km on the market: 

1. The mileage package offer 

The mileage package offer is certainly the most widespread formula. When taking out your car insurance per kilometer, you must define, with your insurer, the maximum distance you plan to travel in a year. To calculate your premium, most insurers use predefined premium brackets and scales, from 6,000 km, 7,000 km, 8,000 km up to 15,000 or 20,000 km. 

2. “Pay as you drive” 

Second car insurance formula per km offered by insurers, is the “pay as you drive”. Each month, you pay your car insurance premium based on the number of kilometers actually traveled. Thus, in July you drive little, for example, you will pay less. In August, you drive more, you will pay more, depending on the extra km actually driven. 

How does insurance work for small riders?

To do this, some insurers may ask you to send them a photo of your vehicle’s speedometer each year, on the expiry date of your insurance. 

Other insurers will provide you with an electronic box to leave in your vehicle. Connected to your mobile phone, it will tell your insurance company the exact number of km you have traveled each month.   

What data do auto insurers collect?

To be marketed, these offers with a box must have obtained prior approval from the CNIL

The latter framing in France the collection and use of personal data so that privacy is properly protected. 

Insurance companies, therefore, do not collect or analyze any data about your driving behavior. 

The data retrieved is linked to your journeys: 

  • The number of kilometers traveled 
  • Start and end times 
  • their date 

What happens if I ride more or less than planned?

If you take out a formula with a mileage package, you must carefully monitor the number of kilometers traveled at the wheel of your vehicle in order to check that you do not exceed the mileage provided for in the contract. If you are below the estimate made at subscription, you will be entitled to a reduction in your car insurance premium. The difference can then be refunded to you. But be careful, if you drive more than indicated in the contract, you will pay a supplement. 

With the package 

Everything will depend on the number of additional kilometers traveled. In the event of a minimal overrun with little risk, in the event of a larger overrun, the price of the additional km may then be increased, and sometimes at a high price, then pay attention to the terms and conditions provided for in the contract in the event of exceeding the kilometer limit. In the event of a surplus, some insurers can then offer you a “mileage recharge”, allowing you to temporarily increase the km limit of your package during the year. In any case, check carefully what is provided for in your insurance contract. 

With “Pay As You Drive” 

There is a priori no limitation as to the number of kilometers covered. However, if you use your car very regularly, this type of insurance may not be the most suitable for your needs. Your insurer can then refer you to a more traditional car contract, and more advantageous in view of your situation and your uses. 

What are the guarantees of insurance per kilometer?

As part of car insurance per kilometer, the coverage and guarantees are strictly the same as with a classic car insurance offer. Only the way to pay your insurance premium differs. You can thus be insured against third parties as against all risks. 

Insurance per km: who is it for?

This type of car insurance is aimed at three driver profiles. 

Small rollers You live in an urban area and use your vehicle very rarely during the week, sometimes on weekends or during holidays, you are what is called a light driver, and this type of payment is therefore perfectly suited to your situation. 

A second car 

Insurance per km can also be cheaper and more interesting for an extra vehicle such as a second vehicle in a country house.

Young drivers 

Last profile that may be interested in car insurance per km, is young drivers. Insurance per km is an ideal formula to reduce the amount of their car insurance premium, they will only pay the number of kilometers actually traveled. 

But, be careful, some insurers may offer these offers under certain conditions, such as having the permit for at least a year. 

How to choose the right insurance when you drive little?

As with conventional car insurance, the calculation of your car insurance premium per km is based on three main criteria: 

Those related to your car, namely its make, model, tax horsepower, etc. 

Those related to its place of residence and parking, the frequency of its use, the profile of secondary drivers, etc. 

Those related to the use of the vehicle, personal or professional.

The criteria specific to each insurer according to the target clientele 

In the context of car insurance per kilometer, a fourth criterion is, therefore, added: the number of kilometers that you will actually travel each month, or each year. 

With, therefore, for small riders, significant price reductions compared to conventional car insurance. 

What are the benefits of per kilometer insurance?

Car insurance by the kilometer has two main advantages: 

An insurance budget that adapts to your uses 

Car insurance per km allows you to modulate your premium and pay a number of contributions according to the actual use of your vehicle. This can be interesting if you are a light rider or if your vehicle very rarely leaves the car park or garage. One last scenario which does not exempt you, of course, from insuring it. 

A guaranteed level of protection 

Car insurance per km allows you to reduce your insurance budget while maintaining a good level of guarantee. If, for example, you are subject to an additional premium. This is particularly the case for young drivers. Car insurance by the kilometer allows you to benefit from cheaper car insurance without cutting back on the level of your protection. 

Please note, in order to cover your parked vehicle when it is not in use, insurers will apply a fixed monthly fee, to which is therefore added the price of your kilometers travelled. The amount of this “parking package” varies according to the insurers and will therefore be added to the km traveled behind the wheel each month. 

What are the disadvantages of per kilometer insurance?

If this formula allows you to make significant savings on your insurance premium without sacrificing your level of coverage, it requires you to be particularly vigilant about the use you will make of your vehicle. 

If you regularly exceed the limit of authorized km, you will lose the advantages of this type of offer . Namely pay an insurance premium calculated by the line. 

Beforehand, therefore, correctly determine your real needs with your car insurer. And, also check that your insurance company offers you to switch to a more classic offer, and at what price, in the event of an occasional overrun, or more regularly, if you ever travel more km than expected, over a month or one year. 

Good to know: some insurance companies will be able to tell you in near real time depending on your usage, and the km traveled each month, if this type of offer remains the most relevant for you. If necessary, they will direct you to more traditional insurance offers that are better suited to your uses