Automobile: what gains can be expected with insurance per kilometer? Our comparison

The use of the car has brought about its transformation. According to data from the firm C-Ways, rental with option to purchase (LOA), also called leasing in English, exploded in 10 years. In 2012, it represented only 11% of household financing for the purchase of a new car. It has now reached… 47.2% in 2021. “The notion of automobile ownership is changing, confirms Michaël Donio, director of the actuarial department of Sia Partners. The practice of renting is growing. And when you rent your car rather than buying it, you are less likely to drive.”.

At the same time, teleworking has further reduced car use. In 2021, 21.7% of employees resorted to at least one day of teleworking reveals INSEE. And among them, nearly 44% have even opted for a 100% teleworking formula.

The least regular motorists are known: the elderly, young drivers and especially city dwellers. “In big cities, there is an underlying trend. Over the past two years, there has been a decline in car use. Confinement and teleworking, but also more recently the cost of fuel also leads drivers to ask questions”, points out Julien Desprez, director of the offer at the broker Vilavi, specialist in personal insurance.

Insurance “small rider” or insurance per kilometer

For them, therefore, remains to deal with the inevitable question of insurance, a compulsory product for all drivers. Many offers have flourished on the market to satisfy them. Latest: Flitter. Launched at the beginning of the year, the young company has entered the niche of insurance per kilometer. The insurance premium results from the addition of a fixed part – which allows the vehicle to be insured when stationary – as well as a variable part, proportional to the number of kilometers travelled. The insured opts for a package – 6,000 kilometers per year for example – and then takes a photo of his car’s counter directly on the application. If he drives less than expected, the rest of the kilometers are transferred to the following year. If he rolls more than expected, he is forced to increase his cap.

“In today’s market, there is no product that adapts to the driver like ours. The big insurers pride themselves on doing this, but in fact they are immutable scales with fixed savings”, explains Jérémy Steinberg, co-founder of Flitter. Key savings at Flitter: 30% on average compared to contracts with similar guarantees for motorists driving less than 10,000 kilometers per year, and up to 55% for those who do not cross the 4,000 terminal mark. The prices, attractive indeed (see below), are allowed thanks to the control of the risk. “Our price is fair. Because when you drive 5,000 kilometers a year, the risk of claims is twice as low as that of a driver who does 20,000,” continues Marion Baudru, the company’s communications manager.

Policyholders do not appreciate the presence of a box in their car

A model that is reminiscent of that of Boursorama, launched a few years earlier. In 2018, the subsidiary of Société Générale began marketing its “pay as you drive” offer (“pay when you drive”) aimed at “city dwellers who drive little”. However, to be able to benefit from the product, you must be an online banking customer, and above all, agree to install a box connected to the dedicated application. Because all the management is done online and the customer must declare his meter reading each month. “This type of offer remains relatively limited in France because the majority of policyholders do not appreciate the presence of a box in their car. They feel it as a major intrusion into their privacy, despite the GDPR law which governs data collection”, summarizes Michaël Donio of Sia Partners.

On the other side of the chessboard, the behemoths of the sector have chosen another model, that of the “small riders” packages. MMA, Groupama, Generali… With them, it is not possible to be billed per kilometer, their scale is imposed. Generali has established a first level at 4,000 kilometers. Most players, with the exception of MMA, offer scales of less than 10,000 kilometers.

9 insurers put to the test

To test the interest of this insurance, Capital has tested nine offers on the market. Six of them are “little riders” packages, while the other three are proportional to the distance travelled. The simulations were carried out by Reassure me. The broker offers its customers, through a simulator, car insurance offers including this type of contract adapted to the driving habits of households. And the enthusiasm is very present since in 6 months, the broker has multiplied by 6 the audience of its pages dedicated to insurance per kilometer.

The simulation was carried out as follows:

  • The driver is 40 years old, and has held his license for 20 years with a maximum bonus
  • the profile makes private use of his car and has a box to park it
  • The vehicle is a Peugeot 208 Puretech 110 BVM running on petrol. It is the best-selling city car in France between January and April 2022 according to AAA Data. We considered it as new.
  • For each insurer, we obtained the price of all-risk car insurance from a conventional contract, then we compared it to what the profile would pay with “light-duty” car insurance or per kilometer.

The conclusion is clear. Within the same insurance – Generali, Axa, MMA etc -, it is better to opt for “small rider” contracts – between 4,000 and 10,000 kilometers per year – because they are between 7 and 26% cheaper than equivalent coverage. unlimited. Groupama, but also the Maaf do not leave the choice to their little riders and impose a scale of 8,000 kilometers. The Covéa group mutual has set a rate 10% lower than that of a conventional contract. At Groupama, the economy climbs to 14% for our Peugeot model.

With these offers for small riders, however, it is necessary to find the insurer who allows you to obtain the right mileage, the package being immutable. One of their big advantages is that they work on trust. The insurer does not install any box in your car and you still benefit from protection equivalent to a conventional contract. However, do not have fun lying to reduce your contribution, because in the event of a claim beyond your package, you will simply not be covered.

If you ever drive less than planned, the kilometers can be transferred to year N+1, thus allowing you to pay the fair price. Better: MMA reimburses its customers in euros in proportion to their reserve of unused kilometers. By offering 5 different ceilings, the Mutuelle du Mans has thus recredited in euros the equivalent of more than 26 billion kilometers to its customers. The only conditions to be met: that the reimbursement is greater than 10 euros and that you are up to date with your contributions.

Kilometer insurance offers the best rates

The most impressive discount is to be found at Generali. The Italian insurer applies a 26% rate reduction for the owner of our Peugeot driving less than 4,000 kilometers per year. A figure, however, lower than the 35% savings announced on its site.

However, the most interesting prices are to be found with the new players, who charge by the kilometer. At Flitter or Boursorama, it is possible to benefit from all-risk insurance for less than 300 euros per year. All with a comfortable scale of 9,000 terminals. This difference can be explained by the lower margin applied by these players, but also possibly a slightly less protective contract. So remember to check your cover, even if all-risk insurance allows you to be generally well protected.

>> Our service – Save money by testing our car insurance comparator

The case of Maif is particular. Its car insurance per kilometer, designed by its subsidiary Altima, is less financially attractive than its two competitors. However, it delivers a lower price to large insurers on 4,000, 7,000 and 8,000 kilometer packages.

Finally, remember that to benefit from these attractive prices, you will have to agree to manage your contract online, from a dedicated application, and in the case of Boursorama and Maif, to install a tracking device that will monitor your mileage.

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