Have you ever wondered what would happen if you the Exceeding Car Insurance Mileage Limit, Then we are here to let you know. The truth is – people usually start panicking whenever they find out their mileage has increased dramatically. However, the whole situation might not be that big of a deal. Your insurance company won’t refuse to pay you out just because you exceeded the estimated mileage.
With that being said, there are certain steps you should follow to make sure your insurance is still valid. If you want to learn more about exceeding mileage on insurance, then keep on reading and I’ll give you all the details you need. Let’s dive right into it!
Insurance Mileage Limit Is It Real?
No, it’s not. As mentioned above, insurance companies calculate your premium according to the annual mileage. You just tell them how much you drive during a year and they will recommend a relevant package or simply estimate your premium depending on the chosen plan. The majority of them won’t set any limits for you – they will simply note down your annual mileage.
However, it still depends on the plan you have. Certain packages might limit the number of miles you drive.
We could also think of the estimated annual mileage as the limit. If you believe that you’ll drive around 5,000 miles in the upcoming year, then you should try your best not to exceed that number. Even though it won’t cause serious problems, it will have certain consequences.
Car insurance mileage limit exceeded? – here’s what’s going to happen.
What Happens If You Exceed Mileage On Your Insurance?
It depends on your insurance plan. Generally speaking, exceeding mileage won’t invalidate your policy in most cases, however, it might increase the premium. It depends on the amount of discrepancy and on your actions, too.
As mentioned above, it’s important to estimate your annual mileage accurately. If you indicate 5,000 miles and end up driving 10,000, then your case might become suspicious. I understand that a lot can happen in a year, but you can always communicate about those changes with your insurance company.
What I’m trying to say here is that you won’t usually get in trouble if you exceed your annual mileage, however, if the inconsistency is too high, you might end up invalidating your policy. Stating low mileage intentionally to avoid higher premiums is unacceptable for insurance companies.
Car insurance mileage limit exceeded? – be a man about it and let your insurer know what happened. Notify them about the changes in your routine immediately, and you’ll avoid a lot of trouble. Hiding that information might cause problems while making a claim. The insurer might refuse to pay out or they might cover a smaller amount of money.
That essentially means that you’ll end up paying more. And if you think about it, lying about your mileage or hiding that information doesn’t even make sense.
Can Exceeding Mileage Limits On Insurance Increase Your Premium?
More than likely, it will affect your premium. It’s hard to answer such questions confidently without having some information about your plan and individual insurance policies. After all, it’s not exactly a rule of thumb – insurers choose to treat their beneficiaries differently.
If you want to know what happens if you exceed mileage on insurance, you should probably consult your insurance company beforehand. That’s the only way to know the definite answer.
The experience of many beneficiaries shows that exceeding mileage on insurance results in an increase in your premium. Once you notify your insurer, they may amend the existing plan and calculate a different monthly cost that’s more suitable to your current situation.
Your annual rates could increase by approximately £100 – £200 pounds if you drive 12,000 miles instead of 6,000. It may not change if you only exceed the estimated mileage by 500 or even 1000 miles. But if you need a serious upgrade in your plan, then you should expect certain changes.
Car Insurance Mileage Limit Exceeded? – What Can You Do
If car insurance mileage limit is exceeded, there are certain steps you should take to make sure you don’t invalidate your policy. You already know what happens if you drive more than you thought, therefore, it’s time we talked about actions you need to take.
- Speak to your insurer whenever you realise that you’ve under or overestimated your mileage;
- Let them now ASAP them if you notice that your mileage is exceeding your annual plan already;
- Ask them what you can do if that happens;
- Estimate the further increase by examining your new driving habits carefully;
- Don’t make a big deal about it and start paying an increased premium.