Car Insurance: The Impact of Excessive Mileage and Ways to Save

Car Insurance: The Impact of Excessive Mileage and Ways to Save

According to a report from t-online.de, the article is about the importance of mileage in car insurance. The mileage that you specify when taking out the contract is an important factor in calculating the insurance premium. The more kilometers you drive, the higher the risk of accidents and the more expensive insurance becomes. The kilometers driven are usually not recorded exactly, but are divided into kilometer classes. The average annual mileage of Germans was 13,323 kilometers in 2021. It is recommended that you be as accurate as possible when reporting your mileage and rather declare a little more than you actually drive. In the best case scenario, you don't overdo the mileage, but insurance companies are usually accommodating for small amounts. However, it is important to inform the insurance company if you exceed the stated limits. In the event of damage, the insurance company can refuse to pay if the number of kilometers actually driven is significantly higher than stated. If you drive significantly fewer kilometers in a year, it is possible to get part of the insurance premium back, but insurers are not obliged to do this. There are also mileage-based insurances where the costs are estimated at the beginning of the year and you have to provide the actual mileage at the end of the year. Depending on whether you drove more or fewer kilometers, you pay accordingly or get your money back. Such insurance rewards driving less, but is more expensive than conventional insurance if you drive more than 10,000 kilometers.

Fact-based information:
– According to the Federal Motor Transport Authority, the average annual mileage of Germans in 2021 was 13,323 kilometers, while the insurance portal “Check24” reported the mileage of its customers as around 10,900.
– For kilometer-based insurance, the costs are estimated at the beginning of the year and the actual mileage must be provided at the end of the year. Depending on whether you drove more or fewer kilometers, you pay accordingly or get your money back. If you drive more than 10,000 kilometers, such insurance is more expensive than conventional insurance.

Market, consumer or industry impact:
– The mileage influences the insurance premium and thus the costs for the consumer. If you drive fewer kilometers, you can save money.
– With higher mileage, the risk of accidents increases and so do insurance costs.
– Mileage-based insurance is an alternative for consumers who rarely use their car. They reward you for driving less, but above a certain mileage, they are more expensive than conventional insurance.

Source: According to a report from t-online.de