How Low-KM Cover Works
Some insurers ask for your estimated annual kilometres driven when quoting, and price lower-mileage drivers more favourably since less time on the road generally means lower accident exposure. Others require you to opt into a specific low-km product tier with a declared distance cap.
Who Benefits Most
- Retirees or semi-retired drivers who no longer commute daily
- Remote or hybrid workers driving significantly less than a full-time commuter
- Households with a second car used only occasionally
- Anyone who's genuinely reduced their driving and hasn't updated their insurer since
Being Accurate Matters
Understating your annual kilometres to get a cheaper premium can void a claim if the insurer later finds your actual driving distance was materially higher — odometer readings at claim time or service records can reveal a mismatch. Declare your real expected distance, and update your insurer if your driving habits change significantly.
Not All Insurers Offer This
Low-km pricing isn't universal — it's worth specifically asking or checking during a quote whether an insurer factors in annual distance, since a driver who qualifies could see a genuinely different (lower) price than a standard quote based on postcode and vehicle alone.
This page is for educational purposes and isn't personalised financial advice. Premiums, terms and eligibility vary by insurer, state and individual circumstances — always check the Product Disclosure Statement (PDS) before buying.