Reducing driving mileage wisely for car insurance cost savings
It seems like the original text is discussing how German drivers can save money on car insurance by adjusting their kilometer allowance if they drive less than what they've stated in their policy. This is based on a survey by Innofact and the consumer advice portal "Finanztip". The text provides advice on how to inform the insurance company and examples of potential savings. It also mentions the importance of being honest and not initially stating a much lower kilometer allowance.
In simpler terms, if you drive less than the number you gave to your car insurance company, you can ask to lower your kilometer limit and save money. For example, if you said you'd drive 10,000 kilometers but only drove 5,000, you could save 7% on your insurance. The text suggests contacting your insurance company in writing and explicitly stating that you want the lower limit to apply retroactively.
If you've consistently driven less than what you've stated for over a year, you might even be able to get money back for previous years. However, it's important not to initially underestimate your driving too much, as most insurers are lenient with slightly exceeding the agreed annual limit.
Here's a paraphrased version of the text:
In many cases, German drivers overpay for car insurance because they haven't adjusted their kilometer allowance to match their actual driving habits. A survey by Innofact and the consumer advice portal "Finanztip" found that 49 percent of drivers have never done this.
If you drive less than the number you gave to your insurance company, you can save money by asking to lower your kilometer limit. For example, if you said you'd drive 10,000 kilometers but only drove 5,000, you could save 7%. The text suggests contacting your insurance company in writing and explicitly stating that you want the lower limit to apply retroactively.
If you've consistently driven less than what you've stated for over a year, you might even be able to get money back for previous years. However, it's important not to initially underestimate your driving too much, as most insurers are lenient with slightly exceeding the agreed annual limit.
Here are some examples of potential savings:
- On average, 5,000 kilometers cost 7 percent more than 2,000 kilometers
- On average, 15,000 kilometers cost 9 percent more than 10,000 kilometers
- On average, 20,000 kilometers cost 14 percent more than 15,000 kilometers
- On average, 25,000 kilometers cost 13 percent more than 20,000 kilometers
Many insurers allow you to change your kilometer allowance retroactively for the current year without having to renew your contract. Kilometer allowances are often set in steps with a range. The text suggests contacting your insurance company in writing and explicitly stating that you want the lower limit to apply retroactively.
It's not recommended to initially state a much lower kilometer allowance. Drivers should estimate realistically, but "defensively". While you can always add kilometers, most insurers are lenient if you slightly exceed your agreed annual limit. However, if the deviation is more than just a few kilometers, you could potentially face a contract penalty, such as an extra year's worth of premiums. The insurer will also recalculate the premium and demand the difference.
"Car insurance typically doesn't ask if you've met your stated kilometer limit or stayed within your tier," says Kathrin Gotthold from Finanztip. However, if an accident occurs or a claim is made, the insurer will check the kilometer usage. As soon as it's foreseeable that you'll be driving more and you can estimate how much, it's advisable to report it, advises Kathrin Gotthold. Then you'll also know if and how much the insurance will cost more. At the latest, you should report it just before you actually exceed the limit - otherwise, you might have trouble in case of an accident, as the insurer will notice the extra kilometers on their own. Therefore, it's a good idea to keep an eye on your annual mileage. After all, more than every third driver (36%) finds the contract of their motor vehicle insurance to be a financial burden these days.
If you're a new driver or insured person and don't have any experience yet with how you'll use your car, it's difficult to give a realistic figure, says Gotthold. Offers a rule of thumb for beginners: Add the kilometers you drive weekly and calculate the sum for the year. But don't use exactly 52 weeks, use 60 to give yourself a bit of a buffer.
In the given context, here are two sentences that contain the word 'advising': The text advises contacting your insurance company in writing and explicitly stating that you want the lower kilometer limit to apply retroactively. Additionally, Kathrin Gotthold from Finanztip advises reporting any anticipated increase in kilometer usage to the insurer just before exceeding the limit.
