(Finance) – If you use your car rarely or only for short journeys, the annual premium may be disproportionate to the effective need for coverage. In this case, one can considerpay as you go insurance. In general, this type of policy – which derives from the English formula “pay per use” – provides for the payment of a fixed amount, lower than the average insurance premium, and a variable amount based on the annual km traveled by the customer. The savings compared to a traditional insurance premium – according to the estimates of Facile.it – is particularly evident if you are within the limit of 5,000 km traveled per year. The calculation of the kilometers traveled by the vehicle is entrusted to a satellite device made available by the insurance company and also useful as a black box and for tracking the car in the event of theft.
Car km insurance is not a choice to be taken into consideration if you travel many thousands of kilometers a year, to be relatively sure of saving a substantial amount with this solution you have to stay within 5 thousand km per year. In general, above 10 thousand km – explains Facile.it – it is better to choose a traditional policy.
The stipulation of the km insurance provides for theinstallation of a suitable device (such as a black box) on the vehicle which records a series of information including the km traveled with the insured car. In this way, disputes between insurance and customer are avoided, which are necessarily aligned on the annual mileage calculation used for the calculation of the premium. The exact mileage is not paid but the car insurance premium according to consumption is defined on the basis of pre-established mileage ranges and the contractor will have to choose the one closest to his real needs, paying a lump sum indicated in the contract.
If the initial estimate is incorrect and the kilometers traveled are greater than those estimated in the contract phase, the company will charge an additional cost calculated on the basis of the excess distances travelled.
There correct estimate of the km traveled in a year it is essential to decide whether a kilometer policy is a viable hypothesis, or whether it is better to keep the classic annual insurance. Among the tips of Facile.it to get an estimate of the kilometers traveled include: mark the starting km in a day X and check the km traveled for daily travel. Use Google Maps to calculate the individual routes traveled each day and add up the kilometers of each route. Once the daily kilometers have been identified, it will be possible to carry out a simple multiplication by the days of the year in which those identified routes are carried out. When making the count, it is advisable to foresee a “cushion consumption” due to extra use of the car (for example at the weekend).
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