Insurance: Limited Mileage Declaration Question
Discussion
My insurer asked me to sign a Limited Mileage Declaration form for my Third Party, Fire & Theft insurance cover.
The Declaration reads as follows:
I hereby certify that the mileage reading of my vehicle on dd/mm/yyy was ###### and I also certify that the vehicle will not exceed #### miles before dd/mm/yyy.
I understand that should I wish to exceed this stated mileage, I will inform my brokers in advance...
The policy Schedule then reads:
It is a condition of this insurance that the maximum mileage of the insured vehicle shall not exceed the limit of #### miles in any one period of insurance. If the mileage limit is exceeded, the cover provided shall be restricted solely to that required by the Road Traffic Acts.
So my two questions are:
a) Is the above worth the paper it is written on? What if there are other drivers (who have their own insurance policy) who use the vehicle (and obviously increase the vehicles mileage)?
b) What is required by the Road Traffic Acts? Is it third party cover only?
The Declaration reads as follows:
I hereby certify that the mileage reading of my vehicle on dd/mm/yyy was ###### and I also certify that the vehicle will not exceed #### miles before dd/mm/yyy.
I understand that should I wish to exceed this stated mileage, I will inform my brokers in advance...
The policy Schedule then reads:
It is a condition of this insurance that the maximum mileage of the insured vehicle shall not exceed the limit of #### miles in any one period of insurance. If the mileage limit is exceeded, the cover provided shall be restricted solely to that required by the Road Traffic Acts.
So my two questions are:
a) Is the above worth the paper it is written on? What if there are other drivers (who have their own insurance policy) who use the vehicle (and obviously increase the vehicles mileage)?
b) What is required by the Road Traffic Acts? Is it third party cover only?
Edited by EViS on Wednesday 4th May 13:28
(a) Yes, this is a condition of the contract, and enforceable. If the agreed mileage limit is exceeded, it matters not who drove the miles, as the limit relates to the car, not the driver.
(b) insurance in respect of liability to third parties.
(b) insurance in respect of liability to third parties.
Edited by Breadvan73 on Tuesday 3rd May 16:46
Thanks for the reply.
a) Is there a difference if the Declaration form reads as follows instead ("I" instead of "the vehicle"):
I hereby certify that the mileage reading of my vehicle on dd/mm/yyy was ###### and I also certify that *I* will not exceed #### miles before dd/mm/yyy.
I understand that should I wish to exceed this stated mileage, I will inform my brokers in advance...
b) In the event that I go over the agreed mileage and am involved in an accident, the other vehicle will still be covered by my insurance, correct?
c) As I do not have comprehensive insurance anyway, would there be any difference in terms of my cover should I go over the agreed mileage?
a) Is there a difference if the Declaration form reads as follows instead ("I" instead of "the vehicle"):
I hereby certify that the mileage reading of my vehicle on dd/mm/yyy was ###### and I also certify that *I* will not exceed #### miles before dd/mm/yyy.
I understand that should I wish to exceed this stated mileage, I will inform my brokers in advance...
b) In the event that I go over the agreed mileage and am involved in an accident, the other vehicle will still be covered by my insurance, correct?
c) As I do not have comprehensive insurance anyway, would there be any difference in terms of my cover should I go over the agreed mileage?
That is incorrect. The clause relates to the mileage of the vehicle, and is clear and enforceable.
If the clause were worded differently so as to relate to miles driven by the policy holder, that would be different, but every agreed mileage clause that i have seen refers to the vehicle, probably because vehicle mileage can be checked (subject to clocking, of course), but personal mileage can't be. The mileage limitation is one of the factors used to price the policy according to risk, with risk increasing with every mile.
If the clause were worded differently so as to relate to miles driven by the policy holder, that would be different, but every agreed mileage clause that i have seen refers to the vehicle, probably because vehicle mileage can be checked (subject to clocking, of course), but personal mileage can't be. The mileage limitation is one of the factors used to price the policy according to risk, with risk increasing with every mile.
Edited by Breadvan73 on Wednesday 4th May 11:00
Breadvan73 said:
The policy clearly limits the mileage of the vehicle, not the driver. If the vehicle mileage exceeds the limit, the cover reduces to third party. Read the clause, posted at the beginning of the thread.
From what I can plainly see "I also certify that *I* will not exceed #### miles " your comment MUST be wrong as it states "I" (being the policy-holder) not the vehicle itself!"Edited by Breadvan73 on Wednesday 4th May 11:19
...therefore it is unenforceable IMHO, and another party (NOT I) could add extra miles!
V8 Vum said:
Breadvan73 said:
The policy clearly limits the mileage of the vehicle, not the driver. If the vehicle mileage exceeds the limit, the cover reduces to third party. Read the clause, posted at the beginning of the thread.
From what I can plainly see "I also certify that *I* will not exceed #### miles " your comment MUST be wrong as it states "I" (being the policy-holder) not the vehicle itself!"Edited by Breadvan73 on Wednesday 4th May 11:19
...therefore it is unenforceable IMHO, and another party (NOT I) could add extra miles!
Edited by gareth.e on Wednesday 4th May 12:53
B16JUS said:
so you agree to your insurance covering you e.g 9000miles but you actually do 15000miles how do they know you drove all 15000 and not your friend done 6000miles and you the rest !
its a silly thing and worth nothing
Its not a silly thing worth nothing,so that is very bad advice.its a silly thing and worth nothing
Limited mileage policys cover the mileage the car will do in a year in the hands of everyone.
That is why they are cheaper.If you or the car is doing more milage then you get a normal policy its that simple.
Just to clarify, the insurer sent me a Declaration with the wording "the vehicle shall not exceed". I changed the wording to "I shall not exceed" and signed it. They confirmed that they received the Declaration and did not mention the change in wording. However, the policy Schedule (which I did not have to sign) still states "the vehicle".
Hence, in the event of the vehicle's mileage going over #### miles and it being involved in an accident, would I be in the right to say that I agreed (by signing) not to do over #### miles personally (which I will not)? Or would the Schedule overrule the wording of the signed Declaration?
Hence, in the event of the vehicle's mileage going over #### miles and it being involved in an accident, would I be in the right to say that I agreed (by signing) not to do over #### miles personally (which I will not)? Or would the Schedule overrule the wording of the signed Declaration?
They probably didn't even read what you sent back, just checked you had signed it.
Without looking at the policy, a definitive answer can't be given, but I would be extremely surprised if the insurance policy was not conditional on you signing the declaration as it was originally worded, and by not doing so you have effectively given them carte blanche to void your policy if they choose to.
Why the concern that it be you personally? Any reason to suspect other people will be making off with the car without your knowledge?
Without looking at the policy, a definitive answer can't be given, but I would be extremely surprised if the insurance policy was not conditional on you signing the declaration as it was originally worded, and by not doing so you have effectively given them carte blanche to void your policy if they choose to.
Why the concern that it be you personally? Any reason to suspect other people will be making off with the car without your knowledge?
EViS said:
Just to clarify, the insurer sent me a Declaration with the wording "the vehicle shall not exceed". I changed the wording to "I shall not exceed" and signed it. They confirmed that they received the Declaration and did not mention the change in wording. However, the policy Schedule (which I did not have to sign) still states "the vehicle".
Hence, in the event of the vehicle's mileage going over #### miles and it being involved in an accident, would I be in the right to say that I agreed (by signing) not to do over #### miles personally (which I will not)? Or would the Schedule overrule the wording of the signed Declaration?
But I don't see what difference it would make in your case in the event of an accident, it would probably effect the fire & theft bit though. If you're third party & have an accident below or over the annual mileage then your insurance will cover the cost of the third party. Hence, in the event of the vehicle's mileage going over #### miles and it being involved in an accident, would I be in the right to say that I agreed (by signing) not to do over #### miles personally (which I will not)? Or would the Schedule overrule the wording of the signed Declaration?
EViS said:
Just to clarify, the insurer sent me a Declaration with the wording "the vehicle shall not exceed". I changed the wording to "I shall not exceed" and signed it. They confirmed that they received the Declaration and did not mention the change in wording. However, the policy Schedule (which I did not have to sign) still states "the vehicle".
Hence, in the event of the vehicle's mileage going over #### miles and it being involved in an accident, would I be in the right to say that I agreed (by signing) not to do over #### miles personally (which I will not)? Or would the Schedule overrule the wording of the signed Declaration?
There you go then.You chose a cheaper limited mileage policy and are now trying to get a normal mileage policy.Hence, in the event of the vehicle's mileage going over #### miles and it being involved in an accident, would I be in the right to say that I agreed (by signing) not to do over #### miles personally (which I will not)? Or would the Schedule overrule the wording of the signed Declaration?
You have to be joking to think that changing a word will help you.
There is no way insurance companies can prove who was driving and putting the miles on,hence why they are vehicle based.
I was commenting on the wording stated in the original post, and my comment on that was not wrong. The OP has now moved the goal posts by telling us that he re worded the declaration. The policy condition remains, however, related to the vehicle, so the attempt to obtain a reduced price policy without agreeing to the reduced price condition is unsuccessful. Another way to look at it is this: If the vehicle mileage is over the stated limit, but the policy holder somehow persuades a court that the declaration modifies the condition, how does he propose to prove personal mileage?
Man from UNCLE said:
But I don't see what difference it would make in your case in the event of an accident, it would probably effect the fire & theft bit though. If you're third party & have an accident below or over the annual mileage then your insurance will cover the cost of the third party.
Could anyone else confirm that this would be the case?EViS said:
Could anyone else confirm that this would be the case?
As discussed above, basically going over that mileage will void your insurance. However, regardless of whether your insurance is void or not, the RTA mandates that insurers provide a minimum cover to any Third Parties involved. However, if they then choose to pursue you for any or all of that money, on the basis you broke a condition of your insurance, then they can.Oh, and if the insurance is void, there is the potential that you could be done for driving without insurance, dependent on if the police are involved.
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