Being accurate with facts car insurance

NeillB

Hi

How accurate do I need to be when declaring annual mileage (in my case I put 3000 miles but I think it could be less, maybe even nearer to 2000) and the estimated value of your car (yet again I think ive given to high a figure) when taking out car insurance? My policy starts on Friday!!Help!

facade

If you put higher than the annual mileage they won't mind if you don't reach it, but can charge more, or even be awkward about paying out if you go over, so better to over-estimate as you have.

As to estimated value, they only pay what the car was worth before the accident, so I don't know why we have to even fill this in on an ordinary "market value" policy. Again, it won't matter to them.

(I wonder if you under-value it they would only pay what you asked for...)

Herzlos

No-one can predict the mileage they'll actually do but it's probably better to round up a bit. Insurance companies won't mind if you say 3000 but do 2250, but would be miffed if you said 3000 but did 15000.

Terry98

Ask them how the annual mileage is described on the policy.

If you tell them you will do approximately 5000 miles and they then put 'not more then 5000 miles' on the policy you will not be covered if you do more then 5000!

Can't you put 'Market Value' for the value of the car?

macman

Well, how many miles have you done in the last year, and is your usage likely to change in the next? It's really not rocket science.

z1a

Wondering if it's worth having a car for such low use.

Shaka_Zulu

I think the OP will pay a slight premium for such low mileage. I was always led to believe that the sweet spot was around 8k miles.

Mercdriver

There is such a thing as an agreed valuation on insurance - I have it on a policy with Hiscox. At one point with my Merc, their valuation was higher than I paid for it, and they confirmed to me in writing on query that as a result of a total loss claim they would pay out the full agreed valuation with no deduction for wear and tear (I have made no such claim of course). So there are policies around that will pay the full value not simply book value (subject of course to voluntary and obligatory excesses.

It is often the case that doing more miles than the OP does results in a lower insurance bill. This is due to many risk factor differences. You are generally less liable to have accidents on long motorway drives than driving short distances in the city, I suspect.

Norman_Castle

Terry98 wrote: »

If you tell them you will do approximately 5000 miles and they then put 'not more then 5000 miles' on the policy you will not be covered if you do more then 5000!

I suspect you will be covered but the insurer may adjust the premium to suit the actual mileage or a realistic estimate.

Ant555

NeillB wrote: »

Hi
(in my case I put 3000 miles but I think it could be less, maybe even nearer to 2000) and the estimated value of your car (yet again I think ive given to high a figure) when taking out car insurance? My policy starts on Friday!!Help!

As already suggested you will typically not be penalised for driving less - certainly not <1000 miles either way.

My approach is to go up one and be safe- I always try the comparison sites and I can not remember there ever being any difference between 7000 and 8000 miles with my own details. I'll always state higher.

I'm assuming that the insurers might do the simple MOT history check and see if the annual mileage on my car is typical in the event of a claim. I realise they might not do this but I err on the side of caution myself.
By the way - If your car is old enough to have had MOTs in the last 10 years then you can do this yourself by using this link.
https://www.gov.uk/check-mot-history

Hope this helps

Le_Kirk

I offer two ways to look at it: -
1. More miles, more opportunity for accidents, more experience so a lower risk of an accident.
2. Fewer miles, reverse the above.
Insurance companies employ actuaries who calculate the change in risk and therefore your premium.