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Mileage insurance: what is it?

August 4, 2022

When you take out mileage insurance for your car, you only pay for the miles you drive. The less you drive, the less you pay. How exactly does mileage insurance work?  

Kilometer insurance: pay per kilometer driven

With mileage insurance, you pay the insurance premium per mile driven. Before you take out mileage insurance, decide how many miles you plan to drive in a year. Based on this, your premium is calculated. If it turns out that you have driven more after a year, you pay the difference. Then your premium is recalculated based on the number of actual miles driven. It gets more fun when you’ve actually driven less. Because then you get the difference back from the insurer. Here, the less you drive, the more you get back.

Mileage insurance: a basic premium and variable premium

In any case, a mileage insurance policy consists of a basic premium (this part you always pay) and a variable premium (the part that is based on the number of estimated kilometers). After a year, this final portion is determined based on the actual number of miles driven and you will receive money back or have to make an additional payment. If you drive a relatively large amount, say 25,000 kilometers per year, you often don’t have to pay anything extra anyway, no matter how many extra kilometers you drive. Do you drive pieces less? Then at the end of the insurance period you will receive a nice amount back.

Three types of car insurance

Mileage insurance is otherwise a normal car insurance policy. You can choose from three types of car insurance: third-party, limited-casualty and all-risk. Third-party insurance is mandatory, even with mileage insurance. This is the least comprehensive insurance and therefore the most economical. With third-party insurance, you are only insured for damage you cause to third parties with your car. If you choose limited hull (also called WA+), you are also insured for certain damage to your own car, namely window damage and damage due to theft. All-risk insurance is the most comprehensive insurance. If you cause damage, then the damage to your own car is also insured.

Thinking more consciously about kilometers driven

One benefit of mileage insurance is that drivers start thinking more consciously about their mileage. When you know you can get money back at the end of the ride, you think twice before getting in the car to hit the road. At least, that’s the idea behind mileage insurance. Those who spend less time on the road are less likely to suffer damage and so you will then get some of the insurance premium back.

Mileage insurance, where do I find it?

Mileage insurance, where do I find it? Belgian insurer Corona Direct Insurance offers mileage insurance that is rated four stars according to customer reviews. On its site, the insurer claims to have already refunded 1.2 million euros in premium to its customers by 2022. Want to know how this calculation works out for you? Make your car insurance calculation.