What happens if you drive more kilometers than specified?

The annual mileage is one of the most important details in the insurance contract. If it is wrong, this can have expensive consequences.

Anyone who takes out a new car insurance policy, or changes providers, is familiar with the procedure: Pages and pages – or seemingly endless clicks on the online portal – the insurance company wants to know details about the car, driver and more. Residence? Garage available? Married? Age of all drivers? Annual mileage?

In contrast to some others, the last point at least sounds plausible: If you drive more, you have a higher accident risk, and therefore have to pay a higher premium. On the other hand, few drivers can save money on liability and comprehensive insurance rates. So it is of course tempting to calculate this figure rather tightly – or even to bend it down a bit.

Car insurance: What happens if you drive more kilometers than indicated?

This, however, can be all the more expensive in the end. That is, when there is a crash and the insurance company notices the misrepresentation – such as when an adjuster inspects the car. The car owner is then underinsured, and the provider can refuse or reduce the payment of the damage sum in the comprehensive insurance. If they settle the damage of the other party in the context of the liability, they will at least reclaim a part of the sum from the policyholder. A few hundred kilometers are usually not a problem, but from the four-digit range, misrepresentations can have unpleasant consequences.

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Auto insurance: It doesn't depend on a few hundred kilometers

An honest statement is therefore important. But should you limit your mileage to get a cheaper rate? It's usually not really worth it. Because insurance companies do not calculate to the kilometer, but in ranges: 10.000, 15.000 or 20.000 kilometers per year are popular limits. Whether someone 12.000 or 14.000 kilometers does not play a role in this respect.

In addition, many car owners have long since experienced a no-claims discount, so that the difference between two mileage classes is practically insignificant.

Auto insurance: please report any changes in mileage

Important to know: If, perhaps because of a move or a new job, the annual mileage changes, that must be reported to the insurance company. This can then of course be a little more expensive – but conversely with fewer kilometers also cheaper.