How does mileage affect car insurance? | Compare the Market

How does mileage affect car insurance? | Compare the Market

Car insurance expert Dan Hutson explains why you need to work out accurate annual mileage figures and how it affects your car insurance premium.

The further and more regularly you drive, the higher your car insurance is likely to cost. That’s because if you’re on the road more often, you’re more likely to be involved in an accident and need to make a claim.

Does restricting my annual mileage reduce my car insurance?

Restricting your mileage could reduce your car insurance. Compare the Market data shows the average premium between 14,001 and 16,000 miles is £1,076.97*. This figure reduces to £829.69* between 12,001 and 14,000 miles.

*All average price amounts are based on Compare the Market data from 1 October to 31 December 2018. These averages are based on all our customer quotes, from people with different age ranges, addresses and driving histories. You may find a cheaper or more expensive quote based on your circumstances.

How do I calculate the number of miles I drive each year?

Some of the ways you could work out your personal mileage include:

•Checking your MOT certificate, which shows how many miles you drove the year before – allowing you to estimate your mileage for the coming year
•Checking your car’s service record. Each time your car has its annual service, the mileage is recorded in your logbook
•When taking out a new car insurance policy, write down the current mileage on you vehicle’s dashboard. Look back to see how many miles you’ve driven when your policy gets close to its renewal date
•Or you could calculate how many miles you drive on a daily basis and simply add them up.

Can I just make a guess on how many miles I drive?

It’s not a good idea to do so. You’ll need to be as accurate as you can be when calculate your mileage. If the mileage figure is too low, it could invalidate your policy and your insurance provider could refuse to pay out when you make a claim. On the other hand, by overestimating your mileage you could pay more for your car insurance than you need to.

If it’s decided that you deliberately misled your provider – by giving a false estimate – to get a cheaper premium, you might find it harder to get cover in the future. Even if you do find insurance, you could face a very expensive premium.

Are there specialist policies for drivers with low mileage?

There are, particularly if you drive fewer than 25 miles each day. Part-time drivers – such as students, or a parent who only uses their car for the school run – might benefit from a lower premium by shopping around for a specialist policy.

For more on the effect of annual mileage on car insurance, see:

https://www.comparethemarket.com/car-insurance/content/the-effects-of-annual-mileage-on-car-insurance/

Or compare car insurance https://www.comparethemarket.com/car-insurance/ and see if you could save.