Estimated Annual Mileage - Car Insurance

Estimated Annual Mileage - Car Insurance

Author
Discussion

Al U

Original Poster:

2,311 posts

130 months

Monday 18th August 2014
quotequote all
It's that time of the year again. I searched for previous threads and didn't find a recent one and as I know legislation is currently being updated as well as insurer's T&C's I thought I would ask the question.

When I was younger I used to put low annual mileages on my policies to combat high premiums, on the understanding that the way the statement was worded on the quotation was "What is your estimated annual mileage". In the event that I was pulled up on it (although I never was) my get out would be that it was an estimation that I got wrong. I have never made a claim on my own insurance so not sure if people that have can share their experiences, whether they have been asked to provide MOT certificates etc.

Now i'm older and more sensible (or dubious) what I would like to know is, does the number you give the insurance company have to be very accurate and what are the implications if it isn't? I'm likely to do around 15000 miles per year and have put that on renewal quotes I have been getting and the price is considerably cheaper than last year so am happy to go with that but just curious what the consensus is. Perhaps someone in the know like LoonR1 can shed some light on this subject?

Edited by Al U on Monday 18th August 21:56

TwigtheWonderkid

43,248 posts

149 months

Monday 18th August 2014
quotequote all
If you estimate 5000 a year and, following a big claim, by looking at the mileage on your service records they see you were going to hit 6 or 7K, no problem, it's an estimate. If you said 5K but had done 7K since the last service/MOT 4 months ago, so you were averaging 21K, then you have a problem. That's not an estimate, it's a lie!

numtumfutunch

4,704 posts

137 months

Monday 18th August 2014
quotequote all

My motors are mostly used for pleasure so my mileage is less than most which has been reflected in my insurance premiums

But I didnt realise that you could give them hooky numbers to reduce your premium even further

Result!

FiF

43,960 posts

250 months

Monday 18th August 2014
quotequote all
Pure speculation but maybe it's just one of the factors which they assess you on risk at time on first quote and later work out how honest you are.

I rang my last insurer up because when taking the cover out had completely underestimated the mileage. Genuine cock up, change of circumstances plus thinking I would be driving another vehicle more as not realising that would enjoy the insured one as much or find it so useful.

Basically told them that that my mileage would double and was informing them and wondered what the extra premium would be. Oh that's ok thanks for letting us know....

So reasonably happy. Though they tried to take the piss at renewal time which was another story.

tjlees

1,382 posts

236 months

Monday 18th August 2014
quotequote all
An estimated mileage has to be within 10% of the actual figure according to my insurer. Additionally CCI ask for the mileage at the start of the policy for limited mileage insurance.

If you have a big claim they will try all ways to avoid paying ie not paying because you got the estimated mileage wrong. Note this excludes the third party element.

In my past claims, they tried to use the lack of service history, grey import argument, what you paid for it rather than market value etc arguments to reduce the price. The wrong mileage is just another excuse to invalidate your comprehensive insurance so they don't have to pay out any costs you have occurred, which in some cases includes the cost of representing you at court.

rewc

2,187 posts

232 months

Tuesday 19th August 2014
quotequote all
My policy doc states "If the premium has been based on a selected annual mileage as shown in
your schedule, you will have to pay the first part of any claim for loss or damage, as indicated below,
where this annual mileage limit is exceeded;
Mileage exceeded by up to 1000 miles £350
Mileage exceeded by more than 1000 miles £600"


Mound Dawg

1,915 posts

173 months

Tuesday 19th August 2014
quotequote all
Just throwing this out there...

Suppose you renew your policy on a "summer only" car like a Caterham in April declaring only 4000 miles per annum. In August you have an accident having done 3000 miles. In reality your annual mileage is less than 4000 as you wouldn't use the car much (if at all) after October but the insurer COULD say "3000 miles in 4 months equals 9000 per year"?

Edited by Mound Dawg on Tuesday 19th August 08:38

LoonR1

26,988 posts

176 months

Tuesday 19th August 2014
quotequote all
I despair of this place. Twig has answered the question perfectly well

At the poster who thinks we never pay out. You've made that 10% story up as it's BS. Get a life and stop wearing tinfoil

The one with the additional excesses that's for a fixed mileage not estimated mileage

The one with the Caterham. You've probably got a more specialised policy that understands this. Much like bike polices or van policies as a bike carrier only.

longblackcoat

5,047 posts

182 months

Tuesday 19th August 2014
quotequote all
One of my cars is down to do 15k per annum, but I lent it to my brother to do a trip to Southern Spain, who added 3500 miles over the course of a month. This will take me over the 15k by some margin, but as I wasn't driving, and he was on his own insurance, my assumption is that for the purposes of my insurance, his additional 3500 miles won't count.

Anyone able to confirm?

Dog Star

16,079 posts

167 months

Tuesday 19th August 2014
quotequote all
longblackcoat said:
One of my cars is down to do 15k per annum, but I lent it to my brother to do a trip to Southern Spain, who added 3500 miles over the course of a month. This will take me over the 15k by some margin, but as I wasn't driving, and he was on his own insurance, my assumption is that for the purposes of my insurance, his additional 3500 miles won't count.

Anyone able to confirm?
You've beaten me to it! Who is to say that it was the policyholder that did the miles.

Randomthoughts

917 posts

132 months

Tuesday 19th August 2014
quotequote all
Dog Star said:
You've beaten me to it! Who is to say that it was the policyholder that did the miles.
I did wonder about trackdays; if you've got a bit of a snotter that you drive to a local track, drive round and round loads, and then home again, how do you demonstrate to your insurers that only 1000 miles of your car's mileage was done on road?

I appreciate, Mr Loon, that I'm going to take a pasting for concocting a scenario specifically for this but having thought about getting a crash-repaired Clio to trackday but not wanting to go to the extreme of making it unroadworthy and hauling it's backside to-and-fro, it's a scenario that actually occurred to me far previous.

I figure there's going to have to be an element of trust and an element of demonstrating the frequency through either bank statements or ideally receipts if you're not disorganised like me...

LoonR1

26,988 posts

176 months

Tuesday 19th August 2014
quotequote all
FFS. Estimated not limited mileage. Every time the same old crap gets trotted out

It's boring

Mr GrimNasty

8,172 posts

169 months

Tuesday 19th August 2014
quotequote all
LoonR1 said:
FFS. Estimated not limited mileage. Every time the same old crap gets trotted out

It's boring
Exactly like your constant general contempt for, and obscenities directed at, the PH population.

Randomthoughts

917 posts

132 months

Tuesday 19th August 2014
quotequote all
Mr GrimNasty said:
Exactly like your constant general contempt for, and obscenities directed at, the PH population.
I'm going to side with this chap, I posed a reasonable question.

Very rapidly the value of your decent responses is being degraded by the utter disrespect for those who pose a reasonably relevant question. If I knew the answer, I wouldn't pose it. Whilst the dregs of PH have regularly had me question my belief there is no such thing as a stupid question, you seem to be very capable of demonstrating that there are stupid answers.

longblackcoat

5,047 posts

182 months

Tuesday 19th August 2014
quotequote all
LoonR1 said:
FFS. Estimated not limited mileage. Every time the same old crap gets trotted out

It's boring
Loon, just humour me a bit here.

I'm not trying to be argumentative here; it's a genuine, real-life conversation I've been having at home.

Option 1
My wife is convinced that I should ring my insurers and advise them that the car will travel some way more than the advised 15k miles this year, possibly up yo 20k. This will inevitably lead to the insurer asking me for more money. The price between 10k advised miles and 15k advised miles was about £50 per annum, so presumably the jump from 15k to 20k would be about the same.

Option 2
I take the view that as I didn't drive the car, and it was under my brother's insurance, I need not do this. I'm unwilling to pay them more as I can't see where they'd have been exposed to additional risk.

So which is the right answer, in your view - advise the insurance company or not?

3Dee

3,206 posts

220 months

Tuesday 19th August 2014
quotequote all
And in reverse.... When asked what mileage, I tend to be cautious and over-estimate it. Last year I said 3k (including track days), but actually did half that, so technically I overpaid, but 3k is the lower limit me-finks.

This year, cos of le Mans trip and a few track jobs, I said 4k so premium was a bit higher... le Mans is over.. unlikely to more that 500 miles for the remaining, so lost again...

Still, since my speedo shows only 2.2 k from new, I guess next year maybe I get a free year or so ...????? smile
Yeah! That's right, pigs will fly!

I ought to stop taking those weird coloured pills shouldn't I!

FiF

43,960 posts

250 months

Tuesday 19th August 2014
quotequote all
Mr GrimNasty said:
LoonR1 said:
FFS. Estimated not limited mileage. Every time the same old crap gets trotted out

It's boring
Exactly like your constant general contempt for, and obscenities directed at, the PH population.
I'm always in favour of telling it how it is, not wrapping an unwelcome message in sugar, and there are the odd times when it's difficult to avoid calling a spade an effing shovel courtesy of Yorkshire upbringing, but I have to agree.

A certain degree of civility doesn't go amiss, though persistent talking of twaddle by any individual poster can merit a pointed put down.

AngryPartsBloke

1,436 posts

150 months

Tuesday 19th August 2014
quotequote all
I can see why loon gets hacked of when people fail to understand the difference between estimated mileage on a normal policy and a limited milage policy.

Randomthoughts

917 posts

132 months

Tuesday 19th August 2014
quotequote all
AngryPartsBloke said:
I can see why loon gets hacked of when people fail to understand the difference between estimated mileage on a normal policy and a limited milage policy.
And my question pertains to that exactly how?

anonymous-user

53 months

Tuesday 19th August 2014
quotequote all
longblackcoat said:
I'm not trying to be argumentative here;
You're not, but he clearly is.