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Car Insurance - Predicted Annual Mileage

dosh37
dosh37 Posts: 405 Forumite
Part of the Furniture 100 Posts Name Dropper Combo Breaker
edited 26 September 2015 at 9:46AM in Insurance & life assurance
This has probably been asked before but...

It’s time to renew my car insurance so I’ve been getting a few online quotes. Most companies ask for an expected annual mileage. Entering a few different numbers result in quotes that vary quite considerably.

In the past when I was commuting a fairly long distance to the same place of work, annual mileage was easy to estimate. Now I’ve semi-retired, this is harder to predict. It’s also not obvious if I should insure for Social,Domestic,Pleasure only or Social,Domestic,Pleasure + Commuting.

Some people think you should inform the insurance company if you exceed your declared expected mileage. Presumably you will then have to make an additional payment plus an admin fee. If that is the case then it is unfairly biased in favour of the insurance company. After all, if a customer does lower than the expected mileage, they do not get a refund.

It seems a very grey area. I was wondering what legal situation is? Is it down to the individual insurance company? I can’t find anything in the policy small print.
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Comments

  • always wondered about this, My insurance company have no idea of the mileage that's on my car, So how would they ever know if I exceeded the mileage I tell them?
  • dosh37
    dosh37 Posts: 405 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    always wondered about this, My insurance company have no idea of the mileage that's on my car, So how would they ever know if I exceeded the mileage I tell them?

    I suspect if there was a dispute, the insurance company would use the mileage written on the annual MOT certificate (assuming the car needs one).
  • dosh37 wrote: »
    I suspect if there was a dispute, the insurance company would use the mileage written on the annual MOT certificate (assuming the car needs one).



    Nope car is only 3 years old so hasn't been MOT'd yet


    and even if it has, Those extra miles could easily be my wife driving under her own policy
  • dosh37
    dosh37 Posts: 405 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    The lack of response suggests either apathy or a willingness to bend over and get screwed by the insurance companies. What's the point of a so called consumer forum that has no effect?
  • Quentin
    Quentin Posts: 40,405 Forumite
    Your policy should set out what to do regarding notifying any under/over estimate. (If not ask the insurer)


    (The mileage you estimate has to include all drivers!)
  • Quentin wrote: »
    Your policy should set out what to do regarding notifying any under/over estimate. (If not ask the insurer)


    (The mileage you estimate has to include all drivers!)



    Only if they are driving under your policy
  • dunstonh
    dunstonh Posts: 118,021 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Nope car is only 3 years old so hasn't been MOT'd yet

    So, they can average the current mileage over the time you have had the car.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dunstonh wrote: »
    So, they can average the current mileage over the time you have had the car.



    They don't know the current mileage though, and as it wont be MOT'd until next year how would they possibly know what miles I have done between now and policy renewal?
  • dunstonh
    dunstonh Posts: 118,021 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    hey don't know the current mileage though

    They would if there was an accident.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dunstonh wrote: »
    They would if there was an accident.



    Yes they would, but how would that help them determine if id gone over the mileage id told them I would do?
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