Estimated Annual Mileage on insurance quote query

EdGasket

When getting an insurance quote/renewal, you have to estimate your annual mileage. What happens if your estimate turns out to be too low due to change of circumstances e.g. train service no longer provided so have to commute by car? I would be quite happy to tell my insurer that actually I am likely to exceed my estimate except I know they will bang up the premium and not only that, charge an 'admin fee' as well; whereas if I was way under my estimate would they give me a refund? Not a chance in hell.

Nasqueron

I bumped my mileage from 8000 a year to 10,000 on renewal and got a lower quote (I genuinely was doing 8000 or so a year - I got my car in 2006 with ~7000 miles on it and when I scrapped it 9 years later, it had about 65000 on it. I upped it as I was doing more driving to cycling events around the country so wanted to get it higher

EdGasket

OK thanks but I'm talking about the mileage increasing significantly mid-term during an insurance period due to unforseen circumstances.

System

To people living in the real world an estimate is an estimate, made in good faith on the best and latest information available at the time. If events change and it's wrong, then it's wrong, you just adjust it next time you are asked.
But do insurers operate on a system of backdated estimates with the benefit of hindsight? I wouldn't be surprised, if it means they can charge some more money.

EdGasket

hmm, well in general premiums are lower for lower estimated annual mileage so I guess it pays people to underestimate if nothing bad is going to happen when they go over that estimate. I just wondered in the event of a claim whether they take the mileage and say 'hey thats higher than your estimate' and then reduce the amount of any settlement pro-rata or even refuse to settle?

verityboo

Do your insurance policy terms and conditions say anything specifically about informing them if you are going to exceed the estimated mileage?

EdGasket

It says nothing in the Key Facts guide but in the 'Car Insurance Guide' it says 'Please tell us immediately if you need to change: (then gives a list of things one of which is)

if you need to change your annual mileage'

So of course they would like to know so thay can increase the premium and charge an admin fee but what happens if you don't tell them? I presume they would still be obliged to meet TP claims in full but maybe reduce own damage claims?