Calculate your annual mileage for car insurance

When you talk to your insurance company about a quote, you should make it clear how many miles you expect to drive annually. This number usually affects the cost of insurance, as fewer miles often mean paying less. It is important to be realistic in your estimates, so that you are not surprised by cost discrepancies.

Calculate your annual mileage for car insurance

If you're not aware of the average kilometers you drive per year, there are a few things you can do to determine that, according to Martin Smith. “Looking at service records or MOTs can be helpful,” he suggests.

Car use also plays a big role in determining your annual mileage, for example, if you have a business use you are likely to cover greater distances compared to people who only use their car for personal purposes.

Mileage ranges typically range from 4,000 miles per year and increase in increments of 1,000 or 2,000 miles. As Robert Lee points out, when you increase mileage to 20,000 miles per year, the ranges expand further, and costs usually increase as well. The more miles you drive, the greater the associated risks. The insurance company's point of view.

Of course, if your circumstances change such as working from home or commuting long distances daily, you must inform your insurance company to adjust your changes.

What if you are a new driver?

Most first-time drivers are likely to be younger, so telematics policies can be a good option to consider.

Remote insurance is a type of insurance that sometimes requires installing a recording device in your car to measure the speed and safety of driving. It can also measure the number of miles traveled and adjust insurance premiums accordingly. Some of these products use applications that can be downloaded onto a mobile phone to record driving habits.

For those who don't use the telematics option, the easiest way to determine your annual mileage is to calculate how many kilometers you drive in one week and then convert that to an annual figure. It may also be useful to add some extra miles for emergencies, such as annual holidays or unexpected trips.

How does mileage affect my car insurance premium?

Mileage is one of many factors that insurance companies use to calculate the cost of car insurance or premium. Asking for a lower mileage may result in a slightly different rating factor being applied, but other rating factors may result in a higher price based on different risks related to annual mileage. Higher.” In other words, lower mileage may not necessarily mean lower car insurance costs.

Customers should also be as accurate as possible when estimating annual mileage. If it is underestimated, this could have consequences at the claims stage, and if it is overestimated, the annual premium will reflect the chosen mileage.”

What happens if you exceed your car insurance mileage?

If you exceed the mileage on your car insurance, several scenarios can occur. In the worst case, your claim may be denied or even cancel your insurance and in the best case, the insurance company may charge you additional fees for the additional miles covered.

As with any insurance purchase, it is important that consumers try to answer questions honestly and provide as much accurate information as possible.

Although you may go to great lengths to estimate your mileage, you may be wrong. If you reduce your mileage, most insurance companies will allow you to increase it. However, if you significantly underestimate the mileage or intentionally misrepresent it when you take out the policy, it could result in your insurance being canceled or your claim being denied Generally, it is rare for people to overestimate the mileage because most adjust it when they renew the policy.