Car insurance expert MoneySuperMarket is urging motorists to review their annual mileage declarations, warning that inaccurate estimates could lead to invalidated insurance policies, rejected claims, and potentially hundreds of pounds in unnecessary costs.
With 76% of UK employees commuting to the office at least three days a week, MoneySuperMarket is urging drivers to check their mileage estimates are accurate, warning that relying on outdated mileage estimates that no longer reflect how much they’re driving could put their policies and premiums at risk.
Mileage is a key factor insurers use to assess risk and calculate premiums. Underestimating may lead to lower upfront costs but could backfire if an insurer deems the information misleading. In more serious instances, this could result in claims being declined or policies being cancelled.
The hidden dangers of incorrectly estimating mileage
A small discrepancy, such as a few hundred miles, might result in a premium adjustment. However, underestimating by several thousand miles could mean drivers are left uninsured and at risk of legal penalties.
Alicia Hempsted, car insurance expert at MoneySuperMarket, said, “Your annual mileage might seem like a small detail, but if your insurer finds you’ve significantly underestimated your mileage, particularly during a claim, they may cancel your policy or refuse to pay out, which could leave you exposed.
“The good news is that checking your mileage is simple, and doing so can save you a significant amount if you’re left without insurance cover when you need it. “While it might seem safer to overestimate, MoneySuperMarket data shows this can increase premiums unnecessarily, by as much as £414. Accuracy is key to getting the best deal.”
To help drivers make informed estimates, MoneySuperMarket has launched a Mileage Calculator Tool, which allows users to approximate their annual mileage based on regular journeys. This is intended as a guide only.
When to update your mileage
Drivers should also remember that mileage declarations are not fixed. If your circumstances change, due to a new job, a house move or switching to remote work or office-based working, informing your insurer can lead to more accurate premiums, and in some cases, a refund.
For those driving over 20,000 miles a year, insurers may classify you as higher risk. However, using telematics (black box) insurance or cutting down on non-essential journeys can help keep costs down.
Top tips to stay covered and save
- Use the MoneySuperMarket Mileage Calculator Tool to estimate your mileage more accurately.
- Be honest when requesting quotes, avoid guesswork.
- Notify your insurer if your driving habits change.
- Consider telematics policies if you frequently drive long distances.
