What is a low Km car insurance policy?
A low kilometre car insurance policy is generally a comprehensive policy that comes with a set yearly kilometre limit (e.g. 10,000 or 15,000 kilometres) up to which you can drive. In return for driving a lower than normal number of kilometres, you’ll receive reduced car insurance premiums from the insurance provider. This is due to the insurer seeing you as being less likely to make a claim on your insurance as you’re on the road less than other policyholders, and therefore less exposed to risk.
The comparison table above lists policies from our Online Partners that offer discounts for low kilometres. You can also change the filters on the table to better suit your requirements.
What happens if I drive more than my kilometre limit per year?
Generally speaking, if you drive more than your kilometre limit, the insurance provider may impose an additional excess if you were to make a claim on your insurance, or your premiums may increase as a result. Other penalties may occur if you fail to give your provider an accurate odometer reading when requested. You can contact your provider directly or check your policy’s Product Disclosure Statement (PDS) for more information.
What is pay-as-you-drive cover?
Similar to low kilometre policies, pay-as-you-drive car insurance often comes in the form of a comprehensive policy where you only pay for the kilometres you plan to drive. These policies are typically designed for people who drive 15,000 kilometres or less each year. These policies, however, may not always be the cheapest or best value, which makes comparing your car insurance options before taking out a policy very important.
Can I increase my kilometre limit during the year?
Yes, you can typically increase your agreed kilometre limit during the year—as long as your provider agrees to the new limit. If you think you’re going to exceed your agreed kilometre limit, it’s often best to contact your provider and update your policy, as this will help you avoid any additional excesses if you need to make a claim.
Increasing your kilometre limit, however, may result in an additional premium being applied or you no longer being eligible for your low kilometre policy. Contact your insurance provider or check your policy’s PDS for more information.
Can I reduce my kilometre limit if I’m driving less?
Yes, but usually not until you renew your policy. Again, you’ll need to contact your insurance provider or update your policy details to do so. If your policy is nearing renewal, it’s often wise to compare your car insurance options to ensure that your policy is still offering you good value for money. You can do so by using Canstar’s comparison tables, like the one above.
Can I switch to a regular comprehensive car insurance policy at any time?
Generally speaking, you can switch your car insurance policy at any time. Moving to a regular comprehensive policy with the same provider, however, may result in an additional premium being applied. If you’re thinking of switching policies, it’s worth comparing your car insurance options first, rather than just renewing with your current provider. By doing this, you could potentially save hundreds of dollars per year on your premium or confirm that your current provider is still offering you good value for your money.
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