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HomeFINANCEThe future of car insurance goes through personalization and payment for use

The future of car insurance goes through personalization and payment for use

The world of auto insurance is changing. The needs of the users are very different from those of yesteryear and now personalized insurance and paying according to the type and duration of driving are on the rise.

Car insurance today has very little to do with what it was just a decade ago. Consumers have new demands and needs and companies, in order to get new customers and retain existing ones, they must adapt and respond to these new requests from their customers. To be successful in a very competitive market, companies have to offer two types of insurance modality that have become a trend and will be even more so in years to come: car insurance by days and by kilometers.

What is pay per use?

car insurance 1 copy
Protection of car

Car insurance for days and insurance for kilometers are part of a concept that will mark the mobility of tomorrow: payment for use. This means that the customer will stop paying fixed and rigid fees with mandatory coverage independent of the use he makes of his car and will begin to do so in relation to his personal characteristics of use of the vehicle.

According to a recent study, the Online Comparison Study towards Smart Savings, carried out by Rastreator, more than 26% of Spaniards believe that they pay in their insurance for coverage that they do not need at any time. A percentage that is even higher, exceeding 30%, among the youngest, the sector of the population that is between 18 and 24 years old, who have just obtained their driver’s license.

According to these same results, almost half of the car insurance customers you’d like the opportunity to customize your policy based on the coverages you may need.

Thus, the answer to all these demands is in the insurance that contemplates the days in which the car is used and the kilometers traveled.

insurance for days

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Day insurance is already being offered today by some companies. They allow car insurance to be contracted for a single day or for the days that the driver needs. These are temporary insurances that allow the car to be insured for the period of time that the client wishes, be it days, weeks or months.

drivers who already they are taking advantage of this modality or they do so because they need to pass the ITV and do not have valid insurance, by export or import abroad or in a sale as the most frequent cases. Among its advantages are its low price and its flexibility.

Car insurance by kilometers

The second type of car insurance on the rise and with a very promising future is car insurance by kilometers. Here it is a prepaid system through which the driver previously contracts the coverage based on the kilometers that he is going to cover with the vehicle. Purchase the so-called “mileage bonuses” and their use is controlled by an electronic device that policyholders must install in their car.

This option is one great idea for infrequent drivers, who rarely use the car. Keep in mind that in this case the amount of the premium will depend on the kilometers contracted: the more kilometers, the higher the price.

Among its advantages, it should be noted that the driver pays only according to the use he makes of the vehicle and that it has more control of the kilometers traveled and, therefore, of all the expenses generated by the car when driving.

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