When it comes to car insurance, there are many factors that affect how much you pay. One of the most important and sometimes overlooked is your annual mileage. But how exactly does the number of kilometers you drive each year influence your premium?
Why mileage matters
Insurance companies use mileage as a way to estimate risk. The more you drive, the more time you spend on the road, and the higher the chance of an accident. It’s simple math: more driving equals more exposure.
If you’re a low-mileage driver (say under 10,000 km per year), insurers may consider you lower risk. That often means lower premiums. On the other hand, if you’re driving 20,000 km or more annually, you’ll likely pay more.
Be honest about your mileage
It might be tempting to underestimate your mileage to save money, but be careful! If you get into an accident and your insurer finds out you’ve been driving more than reported, it could affect your claim or even void your policy.
Can I lower my premium by driving less?
Absolutely! If your lifestyle allows it maybe you work from home or use public transport, driving less could be a smart way to save. Some insurers even offer pay-per-kilometer insurance, where you only pay for what you use.
