What percentage discount does a policyholder receive under the Low Kilometre Discount?

The Low Kilometre Discount is specifically designed for policyholders who drive fewer than a certain number of kilometres within a year, typically around 5000 km. This discount recognizes the reduced risk of claims associated with lower mileage, as less driving often correlates with fewer opportunities for accidents.

In many insurance programs, this discount is standardized at a 10% reduction in premium for qualifying policyholders. This percentage is aimed at promoting safer driving habits and encouraging individuals to limit their travel, which can contribute to lower rates of road incidents.

Understanding this incentive can help policyholders save on their premiums while also fostering an environment conducive to safer driving practices. The other options reflect percentages that are either too low or too high for the Low Kilometre Discount as recognized by most insurance policies.