Automobile: what gains to expect with mileage insurance? Our comparison

The use of the car has changed. According to C-Ways, the location with option to buy (LOA), also called leasing in English, exploded in 10 years. In 2012, we accounted for 11% of household funding for the purchase of a new car. It has now reached ,2 47.2% in 2021. ”Michaël Donio, director of the actuarial department of Sia Partners, confirms the notion of car ownership. The practice of the location is growing. And when you rent your car rather than buy it, you are less likely to drive. ”

At the same time, telecommuting has reduced the use of the car a little more. In 2021, 21.7% of wages recovered less than one day of telework, reveals INSEE. And among them, almost 44% with the same option for a 100% telework formula.

The least regular motorists are known: the elderly, young drivers and especially city dwellers. “In the big cities, there is a background trend. There has been a decline in car use for the past 2 years. Confinement and teleworking, but also more recently the cost of fuel, also leads drivers to ask questions, ”says Julien Desprez, director of supply at broker Vilavi, a specialist in personal insurance.

“Little driver” insurance or mileage insurance

For them, therefore, the inevitable issue of insurance, a compulsory product for all drivers, remains to be addressed. Many offers have flourished in the market to satisfy them. Latest: Flitter. Launched at the beginning of the year, the young company is launched in the niche of insurance per kilometer. The insurance premium comes from the addition of a fixed part – which allows you to insure the vehicle at a standstill – as well as a variable part, proportional to the number of kilometers traveled. L’assuré opte pour un forfait – 6,000 kilometers for example – then take a picture of the car meter directly on the app. If it runs less than expected, the remaining kilometers are transferred to the next year. If he drives more than expected, he is forced to raise his ceiling.

„In the current market, there is no product that fits the driver like ours. The big insurers are proud to do that, but in fact they are immutable scales with fixed savings, ”explains Jérémy Steinberg, co-founder of Flitter. Turnkey savings at Flitter: 30% on average compared to similar warranty contracts for motorists driving less than 10,000 kilometers per year, and up to 55% for those without a franchise up to 4,000 terminals. Prices, indeed attractive (see below), are allowed thanks to risk control. “It simply came to our notice then. Because when you drive 5,000 kilometers a year, the risk of accidents is twice as low as that of a driver who makes 20,000, ”continues Marion Baudru, the company’s communications manager.

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

A model that is reminiscent of Boursorama, launched a few years earlier. In 2018, the Société Générale subsidiary began marketing its “pay as you drive” offering to “city dwellers who drive little”. However, in order to benefit from the product, it is convenient to be a customer of the bank on the line, and especially, accept the installation of a box connected to the dedicated application. Because all the management is done online and the customer must declare every month the statement of his meter. „This type of offer remains relatively limited in France because the majority of insurers do not appreciate the presence of a box in their car. They feel it is a major intrusion into their privacy, despite the RGPD law that governs data collection, ”said Michaël Donio of Sia Partners.

On the other side of the chessboard, the mastodons of the sector have chosen another model, that of the “small rollers” packages. MMA, Groupama, Generali… With them, it is not possible to be charged per kilometer, their scale is imposed. Generali set a first milestone at 4,000 kilometers. Most actors, with the exception of MMA, propose scales of less than 10,000 kilometers.

9 insurers put on the test bench

To test the value of these insurances, Capital put nine market bids on the test bench. Six of them are “small rollers” packages, while the other three are proportional to the distance traveled. The simulations were performed by Réassurez-moi. 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 craze 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 performed according to the following methods:

  • 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 functional Peugeot 208 Puretech 110 BVM. This is the best-selling city car in France between January and April 2022, according to AAA Data. We considered it new.
  • For each insurer, we got the price of a car insurance all the risk of a classic contract and then we compared it to what it would pay the profile with a car insurance “small driver” or per kilometer.

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

With these small rouleurs offers, however, it is convenient to find the insurance, which allows to obtain a good mileage, the package being immutable. One of their great advantages is that it works on trust. The insurer does not install any box in your car and you benefit from protection equivalent to a classic contract. However, do not have fun lying to reduce your contribution, because in the event of an accident beyond your plan, you will simply not be covered.

If you don’t drive less, those kilometers can be transferred in year N + 1, thus allowing you to pay the right price. Better yet, MMA reimburses its customers in euros in proportion to their unused mileage reserve. Offering 5 different ceilings, Le Mans Mutual has re-credited the equivalent of more than 26 billion kilometers to its customers in euros. Only conditions to be met: that the refund is more than 10 euros and be up to date on your contributions.

Mileage insurance offers the best rates

The most impressive discount can 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. However, a figure of less than 35% savings is announced on the site.

The most interesting prices, however, are to be found in the new players, who, for their part, charge per kilometer. At Flitter ou Boursorama, it is possible to have all risks 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 to the actors, but also possibly a slightly less protective contract. Think about it to check your coverage, even insurance all the risk of being globally well protected.

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

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

Finally, remember that to benefit from these attractive prices, you will have to accept your online contract as a driver, from a dedicated application, and in the case of Boursorama and the Maif, to install a snare box that will monitor your mileage.

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