A simples guide

The effects of annual mileage on car insurance

Car insurance premiums are calculated by looking at a host of different factors. Some relate to you the driver, and some relate to the car you’ll be driving. Different insurance providers weight the factors differently too, some placing greater emphasis on certain factors more than others.

One such factor generally assumed to impact upon car insurance is the annual number of miles driven. At face value, this sounds reasonable. The more miles you’re doing out and about on the roads, the more likely you are statistically, to have an accident.

So will restricting your annual mileage actually reduce your car insurance?

It’s likely to.

Given insurance premiums vary widely by driver, there are a couple of things you can try to find out for sure:

1) Compare prices

The easiest way to find out what restricting the mileage would reduce your premiums by, is to get quotes.

Now phoning loads of insurance providers to ask the question would drive you nuts, so the good news is there’s an easier way.

If you use our comparison service, you’ll be able to find out the effects of mileage on your premium. How? Well, when we compare insurance prices we ask a number of questions in order to get an accurate price for you. One of these questions is “what would you say your annual personal mileage is?”

Because we save all your quotes for you, you could easily enter 15,000 miles for example, and then re-run the enquiry with 5,000 miles.

If you leave all other information unchanged and compare the prices, you’ll find out exactly what restricting the mileage can do for you.

2) Enquire about a specialist policy

Alternatively, if you have genuinely very low mileage you may be able to save money by taking out a specialist low mileage policy.

• Classic car insurance

If you drive a classic car and only use it rarely or only during the summer months, you might be able to take out a specialist car insurance policy to cover the vehicle. Often these insurance providers will offer specific incentives and discounts for restricted mileage but you’ll have to go direct to get this.

• Restricted mileage policy

Some insurance providers offer specific low mileage insurance policies for drivers who have restricted mileage. Always compare mainstream insurance providers before you opt for such a policy, just to make sure you are genuinely saving money. You’ll have to speak to specific insurance providers for this one too.

• Black box insurance

Adding a device to your car or using an app that records not only how far you drive, but also how well you drive, can be a good way of reducing premiums, particularly for younger drivers. So-called telematics policies are becoming increasingly available and can offer sizeable discounts to careful drivers with lower mileage. We offer a number of telematics insurance providers on our panel so you can start a quote and see if you could save with us.

There’s not much point in having a car and not using it is there? So, let’s face it, you’re going to do some mileage! That said, if you want to reduce your car insurance premium, driving fewer miles might make good sense to your wallet. See what you might save by comparing prices with us today – but remember, be honest as otherwise you could invalidate your policy

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