Motorists across the UK have been informed that they could potentially save hundreds of pounds on their car insurance premiums simply by providing an accurate annual mileage figure. New analysis reveals that drivers who clock fewer miles could see their insurance costs reduced by as much as £280 annually.
The Critical Role of Annual Mileage in Insurance Pricing
Annual mileage provides insurance companies with a crucial snapshot of how much a driver is likely to be on the road throughout the year. This figure directly influences premium calculations, as insurers associate higher mileage with increased risk of accidents and claims. Being precise with this estimation is therefore essential for both cost savings and policy validity.
Substantial Cost Differences Based on Mileage
Recent data illustrates the dramatic financial impact of mileage on insurance premiums. Motorists who drive less than 1,000 miles per year typically pay an average of £520 for their car insurance. In stark contrast, those exceeding 30,000 miles annually face average costs of around £800 – a difference of £280 that highlights the importance of accurate reporting.
Regular Policy Reviews and Changing Circumstances
Insurance experts emphasise that driving habits and personal circumstances can evolve over time, making regular policy reviews vital. Quotezone, a leading comparison service, advises: “It’s important to regularly review your policy and let your insurer know of any changes to ensure you are in the correct mileage band, especially if you’re driving much fewer miles than you initially covered yourself for.”
Important Considerations for Accurate Mileage Reporting
Several key factors must be considered when calculating annual mileage for insurance purposes:
- Named Drivers: If your policy includes named drivers, you must account for their anticipated mileage and add it to your total.
- Temporary Insurance: Even if additional drivers have separate temporary car insurance or driving other cars (DOC) cover, the miles they travel in your vehicle still contribute to your annual total.
- Business Use: Any mileage accumulated for work purposes – such as visiting clients or travelling between sites – requires specific business car insurance. Standard policies do not cover business travel, potentially invalidating claims if an accident occurs during such use.
The Dangers of Underestimating Mileage
While the temptation to underestimate mileage to secure cheaper premiums might be strong, insurance providers warn against this practice. Cuvva, an insurance specialist, cautions: “If insurers can prove you lied about your mileage to pay less, you might find it difficult to get car cover in the future.” Furthermore, policies with inaccurately low mileage estimates could be invalidated, leaving drivers unable to make claims and facing significantly more expensive future insurance options.
Ultimately, providing an honest and precise annual mileage figure represents a straightforward way for drivers to ensure they receive appropriate coverage while potentially benefiting from substantial financial savings on their car insurance premiums.
