Car insurance premiums can drop by 12 percent with lower mileage

An analysis by Finanztip reveals that drivers can significantly reduce their car insurance premiums by adjusting their contracted annual mileage to reflect actual usage. For instance, reducing the estimated distance from 10,000 to 5,000 kilometers results in an average premium saving of 12 percent.

According to the study, six out of eight major insurers offer retroactive refunds for overpaid premiums starting from the beginning of the current insurance year if the driver's actual mileage is lower than stated. Experts advise policyholders to explicitly request a recalculation to avoid essentially giving money to their insurance providers.