Those who drive a lot pay twice as much for car insurance: This is how mileage metrics determine the amount of your insurance premium | My guide

There are various factors that determine the amount of your insurance premium. Most motorists are aware of your age, where you live, the value of your car, and your claim-free years.

Reading advice: What are claims-free years? What do they mean for your insurance premium?

But did you know that many insurance companies also give you a big discount if you travel fewer kilometers per year? If you fall within a lower mileage range, you’ll also pay much lower premiums. This is demonstrated by our simulation, in which we compared the premium amount for full comprehensive insurance for a similar car (a BMW X1), but with a difference in kilometer scale.

The price differences appear to be large. For example, a driver who travels more than 30,000 kilometers a year will pay about 50 percent more in premium than someone who drives only 10,000 kilometers a year. If you drive less, the difference becomes greater.

The reason for the large difference in premiums is directly related to the number of kilometers. Insurance companies assume that the less you drive, the lower the risk of an accident and therefore damage. It is therefore in your best interest to ensure that the mileage in your contract matches reality each year.

Let’s say: Because you’re now working from home three days out of five, you’re on the job a lot less. This can result in a significant reduction in your premiums if you inform your insurance company.

Your choice of vehicle also affects your insurance premium: You should pay special attention to these factors.

So always check the kilometer scale on your contract. When you insure your car, you give your insurance company an estimate of the average number of kilometers you drive per year. If your car is in storage longer than planned, you should definitely notify your insurance company before your insurance annual renewal date.

Belfius Direct also offers the option of taking out mileage insurance. With this insurance, you can specify the number of kilometers you expect to travel when you sign the contract. At the end of the year, you submit the number of kilometers you have actually driven and a correction may follow. If you drive less than initially expected, you will receive a portion of your premium. Learn more about the mileage insurance principle here.

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Car insurance is much more expensive when you live in a city: these are the differences in premiums

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