Young driver: insurance per kilometer, think about it!
If you are considered a young driver in the eyes of car insurance companies, you know (or you will soon find out) that you are financially in dire straits.
Guilty of being responsible for a higher than average number of claims due to their inexperience at the wheel, young drivers are inflicted with more than substantial premiums during the First 3 years of their car contract : 100% additional premium the first year, 50% additional premium the second year and 25% additional premium the third year.
And again, on the condition of not having been the origin of a claim during the three years in question. Needless to say, the repercussions on the insurance premiums to be paid are far from neutral, even when they opt for the cheapest of the formulas, young driver insurance at third.
Faced with this gloomy observation, there is fortunately a possible solution with the young driver’s insurance per kilometer (or “pay as you drive” as they say in Anglo-Saxon countries). What is it and is it really interesting? Response elements.
Insurance per kilometer, definition
The principle is clear and precise: for the young driver it is a question of paying exclusively for the number of kilometers that he will have actually traveled during the year. And not a kilometer more. But no need to beat around the bush: this young driver insurance formula is primarily intended for drivers who drive little by choice and thus find a formula allowing them to benefit from car insurance at a lower cost all year round.
For young drivers, this solution is therefore a stopgap, offering them an alternative by default in order to compensate for a glaring lack of financial means. Because the counterpart of the (relative) modesty of insurance bills is harsh: the lack of freedom to move around as you wish, on vacation, on weekends or for the pleasure of swallowing asphalt!
Insurance per kilometer: two options to choose from
If the young driver decides to take out kilometer insurance with his insurer, he can choose between two options.
The package kilometer formula
In this case, the young driver decides upstream (and according to his budget …) the number of kilometers he wishes to cover in the year and that he undertakes not to exceed under penalty of an additional premium. case of overrun! And, at a rate of +/- 30 cents per additional kilometer, the “recovery” can quickly reach new heights and prove to be extremely expensive.
Second option: the reduced rate formula.
Less “liberticidal” but more “twisted”, this option puts the market in the hands of the young driver: the less he will roll, the more the price of auto insurance will be reduced. In fact, the insurance takes as a starting point the basic rate of the insurance and applies a reduction according to the number of kilometers traveled.
A winning formula, on conditions of little driving …
In short, you will have understood it but we risk repeating ourselves to be sure of being perfectly understood: package kilometer or reduced rate formula, theyoung driver insurance per kilometer is only really interesting if the condition is to drive a small number of kilometers per year.
Impossible to give figures as the prices differ from an insurance company to the other and depending on the options chosen, third party insurance, extended third party insurance or comprehensive insurance.
However, provided you ride between 8,000 and 10,000 kilometers per year, one can reasonably expect savings of up to 30% on a classic annual insurance premium! Even (a lot) more if you ride (a lot) less …
Some insurance companies have devised the “pay how you drive” formula to financially reward young drivers for virtuous driving. A unit then analyzes their driving in real time and the price of the insurance is then a function of the quality of the pilot.
Insurance per kilometer, a winning formula provided you … compare
As we have seen, the pricing criteria depend on a host of personal decisions that you have to test in real conditions in order to know precisely how much the kilometers you will choose to drive per year will cost you.
For this, nothing like using an online auto insurance comparator really complete, like LeLynx.fr for example. In a few minutes and without any commitment, you will be able to do all the young driver insurance simulations you want, taking into account absolutely all the parameters of your personal scenario: type of vehicle to be insured, insurance formula chosen, per kilometer package or reduced rate formula …
You can still and above all analyze the proposed rates depending on the different number of kilometers entered. Until you find the precise number of kilometers that you can afford according to your budget. There’s just…