Some people use their vehicles very little over a year. Car insurance is a significant expense, and its cost can quickly become a burden on the budget of occasional road users. However, some packages are tailored to the infrequent drivers, allowing them to reduce the cost of car insurance and make them conditioned by their travel distances.
What is an infrequent driver?
Many motorists can be considered short-distance drivers. Firstly, there are those who use their vehicles very little and only for short journeys. There are also people who favour public transport for daily trips. Some young drivers who do not use their cars very much can also be considered infrequent drivers. Retired people who do not drive much may also fall into this category. Generally speaking, these car users are considered by insurance companies to be less risky. This is why it is possible to take out a contract that is tailored to this profile.
Insurance plans for the infrequent driver
The plan offered to the aforementioned users is usually linked to a formula with a fixed mileage. It is a responsibility that commits a motorist to not exceed certain mileage during a given year. This formula actually benefits both the insurer and the insured. The risk is reduced and the insured will obtain a reduction that is proportional to the number of kilometres he or she has chosen. When there are fewer kilometres allowed in a policy, the discount will be greater. For a four-thousand-kilometre option, the reduction could be up to 40%. This is a significant advantage for motorists who do not use their cars daily. Compliance with the mileage limit is usually checked once a year. The insured person must have a free mileage counter reading taken by the garage.
What to do if the permitted mileage is exceeded?
An insured person may exceed the number of kilometres allowed in the contract. The overrun is usually minimal, i.e. it does not exceed ten kilometres. In most cases, the insurer will not take it into account. If, on the other hand, the overrun is significant, the car insurance company must be informed quickly. The insurer can therefore change the contract to a more classic formula.