Berlin – Almost half of drivers in Germany (49 percent) have never optimized the mileage tariff feature. That is, the information about the kilometers that one is allowed to drive in a year with their insured vehicle. This is the result of a representative Innofact survey commissioned by the advice portal “Finanztip”.
You can save money by reducing the number of kilometres you have declared to your insurance company by driving less. If you declare more kilometres than you actually drive when you take out a policy, you are throwing away money. On average, you pay 16 percent too much if, for example, you have declared 10,000 kilometres in your contract but only driven half that. This is the result of our own study, which Finanztip refers to.
If you have driven significantly fewer kilometers than stated in the contract, it is better to inform your insurer. Many insurance companies allow such a change in mileage retroactively for the current year without having to take out a new contract, according to “Finanztip”. The mileage information is often given in increments with a range.
How to report lower mileage
You should report the reduced mileage to the insurance company in writing by email or letter. You should also confirm receipt of the report. “Important: do not extend the contract and be careful with credits for the coming year – because then you have to stay with the insurer,” says Kathrin Gotthold from “Finanztip”. You should also write explicitly that the reduced mileage should apply retroactively for the year.
And: If you have been with the same insurance company for more than a year, you can even try to get money back beyond the current year – if you have driven less in each year.
Further examples of savings from fewer kilometres:
It is not advisable to state a mileage that is far too low from the outset. Drivers should estimate this realistically, but “but defensively”. After all, it is always possible to report mileage later. And if the agreed annual mileage is only slightly exceeded, most insurers are accommodating.
“But if the deviation is not just ten plus a few cents, in the worst case scenario, you could be faced with a contractual penalty, which could be an additional annual premium,” says Kathrin Gotthold. The insurer will also recalculate the premium and demand the corresponding amount.
“Car insurance companies generally do not ask whether you have actually reached the mileage limit or whether you have stayed within the limit,” says Gotthold. However, if an accident occurs or another type of damage is reported, the insurance company will also ask about the mileage.
When is it advisable to report excess kilometers?
“As soon as you can see that you will be driving more and you can estimate how much, it is advisable to register,” advises Kathrin Gotthold. Then you will also know whether and how much more the insurance will cost. “At the very latest, you should register shortly before you actually exceed the limit – otherwise you will be in trouble in the event of a claim because the insurer will calculate the extra kilometers themselves.” You should therefore keep an eye on your annual mileage. Because one in three drivers (36%) now sees their car insurance contract as a financial burden.
How can I calculate my mileage as a new driver/insurer?
If you don’t have any experience of how exactly you will use your car, it’s difficult to give a realistic number, says Gotthold, and gives a rule of thumb for beginners:
You add up the kilometers you drive each week and multiply the total by the year. But don’t take 52 for the exact weeks, multiply it by 60. Then you have a small buffer.
