The effects of annual mileage on car insurance

A simples guide

The effects of annual mileage on car insurance

Your insurance provider will want to know how far you drive on average each year – it’s one of the main factors used to calculate your car insurance quote. But you’ll need to be as accurate as possible when you tell them or your policy may be invalidated.

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The further you drive, the higher your premium

It’s a simple matter of probability. The further and more often you drive, the more likely you are to be involved in an accident and need to make a claim. Therefore the higher your annual mileage, the higher your car insurance premium is likely to cost.

So will restricting my annual mileage reduce my car insurance?

It could do, but your insurance provider will consider multiple factors when calculating the price of car insurance, such as your age, where you live, your claims history and the car you drive. So although you’ll always be asked how many miles you drive each year, there are other important areas that determine the cost of your premium.

How do I work out how many miles I drive?

It’s important to be as precise as possible about the number of miles you drive so that your insurance provider can more accurately price up your premium.

It’s simple to work out: just calculate how many miles your drive each day and add them all up, not forgetting to add weekends away. Statistics from the Department of Transport show the average driver of a privately owned car in the UK racks up 7,900 miles annually.

You might drive fewer miles if you’re a student and only drive when you’re back home for the holidays, or if you’re retired and no longer need to commute to work.

Try to be accurate when estimating your mileage

Insurance is about risk and to work out an accurate premium, your insurance provider needs to know as much as possible about you and your driving habits. If you make a claim and your insurance provider discovers your mileage estimate wasn’t accurate, they might decide not to pay out.

If you’re deemed to have knowingly misled your insurance provider in order to get cheaper car insurance, then you could invalidate your policy. You may also find it difficult to get cover in the future with mainstream providers and, if you do, your premiums could be very expensive. Honesty really is the best (and only) policy when it comes to insurance.

Consider specialist policies

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

  •  Classic car insurance
    If you drive a classic car and use it rarely or only during the summer months, you might be able to take out a specialist classic car insurance policy to cover the vehicle. 

  • Restricted mileage policy
    Some insurance providers offer specific low-mileage insurance policies. Always compare mainstream insurance providers before you opt for such a policy, just to make sure you’re genuinely saving money. 

  • Black box insurance
    With black box insurance, also known as telematics insurance, a small device is fitted to your car (or you download an app to your phone) that tracks aspects of your driving, including the number of miles you drive. It’s the only way your genuine mileage will be recorded. The insurance provider uses the information collected to decide how you drive. If your drive safely, your premium could be reduced.

Start a quote 

Let’s face it, if you have a car 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. See what you could save by comparing prices with us today

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