Insurance.

[tanuie]

When you fill in on a insurance quote you have to put in how many miles you are going to do in the next coming year, what happens if you exceed the miles you have put on the form? Does the insurance become null and void if you exceed the amount you have put on the form.

 

[Andyfkettle]

I believe you just inform them at the point of going over. We did this on our last car and had no issues or extra charges.

Don’t think it changed the renewal cost either.

 

[grober]

Its all to do with risk assessment- put down annual mileage of 6,000 when you are pounding the motorways of Britain and doing 40,000 a year is plainly misrepresentation of the facts and would get you in trouble in the event of an accident. With an extra 1,000 miles on an annual mileage of 12,000 it seems less likely . BUT to be on the safe side inform them as suggested above as there's usually an overarching clause concerning the "disclosure of material facts " in your insurance documents somewhere. Basically goes you must inform them of any changes that might effect your insurance risk and they then decide if that constitutes an additional risk or not and whether to up your premium or not.

 

[markjay]

Aviva told me the annual mileage affects the premium in certain increments, e.g. 3,000 miles is the same as 4,000 miles because the next increment starts at 4,000 miles anyway.

So if your declared annual mileage is below the next price change point then you might not have to pay more when you let them know you exceeded it.

 

[tanuie]

Many thanks for your replies.

 

[Yugguy]

I do 9500k a year but I always declare 10k then I'm not worried.

 

[Rayny]

9500k = 9 and a half million miles !

Remember - Actuaries and underwriters are constantly reviewing their algorithms - Do not take too much stock of what you are told by an insurance agent on any given day, because it might already be out of date.

 

[JSpringer]

Its an awkward one tbh. At the start of any given period of insurance you can never be sure of exactly how many miles you will cover over the following 12 months (things happen, circumstances can change etc.) but you should provide as close a 'guestimate' as you can so that your insurance package is tailored to your situation correctly and priced accordingly.

Having said this, insurers will not hold you to the odd 500 miles or so and void your policy in pretty much any circumstances surrounding your declared mileage.

If you declare you will do 5000 miles per year and then after 3 months of the policy you submit a claim and they find out that you have already exceeded that then they could pull you up and ask you to pay the proportional premium increase for a correct mileage allowance under your policy.

Also, if you declare say, 7000 miles in the year and find that after 11 months you have done 8000, I wouldn't panic. I would just increase it to the correct amount at the renewal date.

Its all based on claim statistics and in theory, someone who does 30000 miles per year is more likely to be involved in some sort of accident or claim than someone who does only 5000. All insurers use these stats differently and Aviva might charge you different amounts for 3000, 5000, 7500 and above 10000 for example and someone like Elephant or Direct Line might have different mileage bands. The best way to look at these is to play around with one of the price comparison sites and see what the differences are.

The only instances where the policy is really mileage critical is classic car policies where hefty discounts usually apply for limiting the mileage to low amounts.

I used to be a broker for over 20 years and have pretty much done all of this to death.

J

 

[ph47mf]

sounds like you worry a bit too much over nothing, live life a bit dangerously

 

[BTB 500]

Aviva told me the annual mileage affects the premium in certain increments, e.g. 3,000 miles is the same as 4,000 miles because the next increment starts at 4,000 miles anyway.

I do this online - keep increasing the annual mileage till the quote goes up, then set it back to the previous figure.

 

[Deleted member 6183]

Just don't forget the fact that all insurance companies are complete scum simply out to rip you off and, probably, sleep with your wife as well.

 

[whitenemesis]

probably, sleep with your wife as well.

There goes my NCD ...