Limited Mileage Car Insurance: Discover an Insurance Made for You! - Arkwright Insurance

Limited Mileage Car Insurance: Discover an Insurance Made for You!

When you have a car that you use little, it is time to opt for Limited Mileage Car Insurance; you may be frustrated by having to pay for expensive insurance if you are not into it. However, this article is to help you know that there is an alternative solution that is suitable for small drivers: Limited Mileage Car Insurance is it. In this write-up, we are going to be looking at vital stuff such as;

  • The way Car insurance per kilometre works
  • Who is doing this type of contract
  • How much can I save on it
  • What happens if I travel more or fewer kilometres than indicated and more

Limited Mileage Car Insurance

What in the World is Mileage Insurance in Details?

In recent years, insurance per kilometre has been on the rise. These are auto insurance in which you pay for the distance travelled. But are these insurances per kilometer really interesting? How is your mileage controlled? What are the consequences if you exceed the established mileage?

Again, Insurance per kilometer is car insurance, the premium of which depends on the number of kilometres travelled each year with your car. If you drive very little, you are less likely to have an accident than someone who travels long distances every day. Your premium will be less.

When you purchase insurance per kilometer, you must indicate in advance how many kilometers you intend to travel. If you drive less than expected, the difference is refunded. If you drive more, you pay extra. However, most insurers use pre-defined slices of 8,000, 10,000 or 15,000 km per year, for example.

Car Insurance Per kilometre, How Does it Work?

Limited auto insurance is a type of insurance contract for people who drive little their vehicle, for which the amount of the premium depends on the number of kilometers traveled. The less the insured conducts, the lower the premium. Concretely, there are several formulas.

For example, the insured can commit to travel a certain number of kilometers per year. The ceiling depends on the insurer but is generally between 7,000 and 12,000 kilometers. In this case, the insurer installs a control box on the insured car and once a year, the owner has to check the mileage at a garage. If the ceiling is exceeded, the insurers accept a few tens of kilometers in excess, but beyond that, this leads to an increase in the premium.

Some other insurers offer a formula that rates only kilometers rolled from the first kilometre. Conversely, others propose to deduct the unrolled kilometers from the premium.

Who is Doing this Type of Occasional use Car Insurance Contract?

This type of contract was primarily designed for drivers who use little of their vehicle and who are obliged to travel only short distances. But it is not only this type of driver who can consider taking out such insurance.

For example, should you have two cars, one of which is used to a small extent, it may be very beneficial to buy auto insurance per kilometre to significantly reduce the cost of insurance since even a vehicle that circulates little Or not must be insured.

Limited Mileage Car Insurance

Who can Benefit from Insurances per kilometre and how Much can I Save?

Insurance per kilometre can be interesting if you use very little of your car, for example only for shopping or for an occasional outing. Or if you have a company car and only use the family car in exceptional cases. The discounts you receive and the maximum mileage vary from one insurer to another.

What Happens if I Travel more or Fewer Kilometers than Indicated?

Before taking out insurance per kilometre, think carefully about your annual mileage. Ask about the amount to be paid per additional kilometre if you exceed the predefined mileage. For some insurers, the annual statement is very disadvantageous if you exceed the limit.

Also consider any changes, such as a move or a change of work. They could cause you to use your car much more often suddenly. You can easily walk 10 kilometres per day without really realising it. But, over a year, this implies a difference of more than 3,000 km.

What if you have an accident and seem to have travelled more kilometres than agreed? You will have to pay the additional kilometres anyway. If the difference is for example 1,000 km, some occasional use car insurance insurers will apply an additional deductible. And your premium will increase the following year. Do not cheat on the number of kilometres travelled. This could be considered a fraud and your insurer could, in this case, refuse to intervene or turn against you.

If you have travelled less than expected, insurers that take into account the exact number of kilometres will reimburse you for the difference. For insurers who use the system in tranches, nothing should change.

How is the Distance Travelled Monitored in the Occasional use Car Insurance?

When you conclude your car insurance, you indicate on your application form the number of kilometres on the meter of your vehicle. A year later, before the deadline, you will be required to submit your new statement. If you do not do it or do it late, your insurance premium could be recalculated by a very high mileage.

In the event of an accident, your odometer will be checked. Also, unannounced audits may take place during the year.

You notice that you are driving more than you expected? Do not wait until the last moment to inform your insurer that you are likely to exceed the defined mileage. It will tell you how it will affect your insurance premium. If you find the increase unacceptable, you can terminate your contract and opt for a more advantageous formula.


Before taking out an occasional use car insurance, you have to be certain that you can predict the number of kilometers you will be driving in the year, to ensure you do not exceed the limits. Did you know that at Arkwright Insurance Brokers, you get a discount on your car’s premium should you drive less than 10,000 km per year? Interested?

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