A survey has shown that 70% of motorists are now aware of vehicle insurance priced according to the number of kilometres driven. At the same time, uncertainty remains about how this type of insurance works in practice.
Pay-per-kilometre vehicle insurance is gradually becoming more familiar to drivers in Czechia. According to a survey conducted for Pillow, 70% of respondents in Czechia who arrange compulsory third-party liability insurance for a passenger car have already heard of this type of insurance. However, the results also show that consumers still have questions about how the model works.
The survey of 1,000 respondents from across Czechia aged 18+ showed that insurance with a price linked to mileage is no longer a niche topic. Even so, there is still significant room for further education: three in ten people have not yet heard of this principle. According to Pillow, this confirms that the Czech market is ready for a broader discussion about fairer insurance pricing, but also needs clearer and more accessible information.
Only half of Czechs know how the insurance works
Another finding from the survey shows that the public is still unsure about how the product itself works. Only around half of respondents, specifically 48%, answered correctly that the client reports the vehicle’s mileage to the insurer once a year.
The other half of drivers mistakenly believe that a special device must be installed in the vehicle, that mileage must be reported every month, or that the vehicle must be taken to an inspection point once a year. These answers show that Czech vehicle owners do not yet have a clear idea of how this type of insurance is managed in practice.
“The survey confirms two important things. First, pay-per-kilometre insurance is already widely known among Czech drivers. Second, there is still room to better explain how this model works in practice and what benefits it can bring to people who drive less. For them, a fairer link between the price and the actual use of the car makes the most sense,” says Martin Podávka, co-founder and product strategist at Pillow.
Pillow has long focused on making insurance correspond as closely as possible to how a car is used. The fair mileage-based model offers a more attractive price, especially to drivers who do not drive every day and cover less than 12,000 kilometres a year. There are more than 2 million such passenger cars in Czechia.
About the survey
The survey was conducted via a CAWI online panel. It involved 1,000 respondents from across the Czech Republic aged 18+ who arrange compulsory third-party liability insurance for a passenger car. For both questions cited, the maximum statistical margin of error is 2.6%.