The price of car insurance will soar in 2024, but a little-known option can reduce the bill by 40%

Automobile insurance contracts are no exception. inflation but it is possible to pay less thanks to this option.

This is not a surprise in the current context, but car insurance will not escape the crisis in 2024. a further rise in prices. This increase could reach 5% according to certain specialists. Depending on the nature of your contract, third party or all risks, this should increase your contribution by 30%. 50 euros on average next year. Several factors explain this increase in prices: the cost of raw materials and energy, the increase in the prices of spare parts and the increase in labor costs due to new technologies embedded in vehicles.

According to Lynx.fr, the reference site for insurance comparators, the cost of automobile repairs has increased. by 8.4% between 2022 and 2023. The increase to come from car insurance rates – whose figures will be made official in December – therefore constitutes a second blow for motorists who are already struggling. not spared when they have to go through the garage box. Face to face With all these additional expenses, a solution exists to reduce the cost of your car insurance. Too few users know it, but all companies have been offering insurance per kilometer for several years, a concept that came straight from across the Atlantic.

Several hundred euros in savings. the key

What is the difference between traditional insurance and kilometer insurance? Rather than contributing annually for an unlimited number of kilometers, the insured person who opts for insurance per kilometer will pay for the number of kilometers he actually travels.Thus, provided you do not exceed a certain number of kilometers per year, the less you drive and the less you pay. There are two options when you sign up; this type of contract: PAYD ("pay as you drive" which can be translated as "pay for what you drive") and the mileage package. In the case of PAYD, the number of kilometers traveled is measured. à using a connected box installed in your car. Each month, a statement is sent à the insurer who adjusts your bill to the nearest kilometer.

In the case of the mileage package, the insured person is committed to not exceed a previously set ceiling. This time, there is no need to have a meter installed but the insurance company will ask you at the end of the year to have your meter checked in an approved garage. If the authorized number of kilometers is significantly exceeded, the contribution will be revised to the rise. Kilometer insurance is particularly intended for small drivers, those who most often do not use their vehicle daily or on short journeys. Depending on different criteria (experience, bonus or penalty, car model…), the price per kilometer varies between 1 and 4 euro cents.

Elderly people, owners of a secondary vehicle but also young drivers – for whom the insurance premium is often higher due to their greater propensity to cause accidents – are the big beneficiaries of kilometer insurance. According to a study carried out by Ipsos in 2017, this formula would reduce the amount of your car insurance contract by around 40%, i.e. a possible saving of several hundred dollars. #39;euros each year. Enough to largely cushion the next increase in contributions.