How Does Annual Mileage Affect The Cost of Car Insurance?

Car insurance is based on a number of factors and every insurer is different. Some may place greater importance on certain factors however the focus of this blog is mileage. Your total mileage is important when it comes to getting insurance but just how much of an effect does it have?

While this again will vary from insurer to insurer your total mileage will often be one of the main factors when it comes to the cost of your insurance. After all, your total mileage is basically giving the insurer an idea of how much time you’ll be spending on the road.

The more time you spend on the road the more chance you have to get into an accident. Yes, that might seem a little morbid but it’s the insurer’s job to examine how much risk is involved with insuring you so they have to consider it, don’t they?

Basically, you should think about your total mileage like this. The longer you spend on the road the more you are likely going to need to pay. Research from various sources points to all sorts of things but the basic rule to follow is anywhere above 15,000 miles will likely cost more than the many numbers below it.

Although individual categories can differ research has suggested that people could actually save money if they spend more time on the road in some cases. But this will all depend on your insurer and many other factors.

Mileage isn’t the only thing looked at when giving you your insurance quote after all. Your age, the condition and age of your vehicle, your location and many other factors are all considered. Although a high mileage and a young or old age are a combination that will almost always ensure higher premiums.

If you’re unsure of the type of insurance you need, it’s always worth approaching an insurer directly to get their recommendations. Companies such as One Sure Insurance are always willing to help.

The Importance of An Accurate Mileage 

One thing many people don’t really take into consideration when applying for insurance is actually getting an accurate mileage rating. Many people make the mistake of guessing what their mileage will be which is not something you should do.

Guessing your mileage is likely to lead to much bigger problems later on. You will either underestimate or overestimate your mileage and both of these are things you want to avoid. Underestimating your mileage will almost always invalidate your policy if you later need to make a claim.

If your insurance provider later finds out and they believe you knowingly misled them then you will likely find getting car insurance in Colorado in the future difficult and could face further sanctions. Overestimating your mileage will mean you will likely end up paying more for your premiums without getting anything in return.

So, giving insurers an accurate reading on your mileage is important but how do you do that? Well, don’t worry there is a number of ways you can go about it. The first and easiest method is to use your annual MOT certificate.

The certificate should tell you your miles for the year before and if your driving habits have stayed the same then you can use the certificate to estimate your mileage for the following year. You can also check your vehicle’s service record as well the mileage should be noted in the log book. Although this will only be reliable if you have had a recent service. This MOT history website provides a free, customised report of previous MOT test results including mileages, failure and advisory notes, for any vehicle dating back since 2005 (data provided via Driver Vehicle Licensing Agency). Have your car reg number ready to get an instant report.

You could also try the more old fashioned method of using a calculator and doing your own calculations. However, unless you are very careful this could easily lead to you either over or underestimating your total but it will at least give you a rough idea to work with.

What Policies Should I Look At? 

If you are concerned about how your mileage could impact your insurance then there are specialist policies you could look at. Low-mileage insurance policies will offer lower pieces if you drive less than 25 miles per day. These are hard to find though and not every insurer will offer them.

The more common alternative is black box insurance which utilises a monitoring device. The black box monitors your driving then relays the information back to your insurer. The safer you drive and the less time you spend on the road the lower your premiums will be.

*This is a collaborative post.