Incorrect mileage information for car insurance and its expensive consequences for drivers

Incorrect mileage information for car insurance and its expensive consequences for drivers

According to a report by www.echo24.de, incorrect mileage information for car insurance is a common problem for drivers. If the actual mileage differs significantly from the estimated one, the insurance company may refuse to pay in the event of a claim. In addition, a contractual penalty and additional payment may be due. If the specified annual kilometers are significantly exceeded, the penalty can be up to twice the actual insurance costs. Mileage-based vehicle insurance, which adjusts costs to actual mileage, could be a cost-effective option, especially for infrequent drivers.

The impact of these issues on the market and consumers is diverse. On the one hand, refusing to pay in the event of damage can lead to financial burdens for drivers. A contractual penalty and additional payment could also lead to additional costs. If the specified kilometers are significantly exceeded, there is even a risk of a penalty amounting to twice the annual car insurance premium. This can have a significant financial impact on consumers.

For the insurance industry, mileage-based vehicle insurance could be a way to minimize risk by accurately adjusting costs to actual mileage. The introduction of such tariffs could prove beneficial, especially for infrequent drivers who can benefit from cost-effective options.

Overall, it is clear that the precise indication of mileage is very important when it comes to car insurance and can potentially have high financial consequences for consumers. It will be crucial how insurance companies react to this problem and whether kilometer-dependent tariffs can establish themselves as a future-oriented solution.