The annual mileage is one of the most important details in the insurance contract. If it’s wrong, it can have costly consequences.
Anyone who buys new car insurance or changes providers knows the procedure: page by page, or seemingly endless. Online portal clicks – the insurance company wants to know details about the car, the driver and more. Home? Garage available? Married? Age of all drivers? Annual mileage?
Unlike some others, the last point sounds at least plausible: if you drive more, you have one increased risk of accident, and therefore has to pay a higher price. On the other hand, infrequent drivers can save money with liability and full rates. Of course, it’s tempting to estimate this figure fairly accurately, or even lower it a bit.
Car insurance: What happens if you drive more kilometers than indicated?
However, this can end up being even more expensive. That is, if there is an accident and the insurance company notes incorrect information, if, for example, an expert examines the car. So the car owner is underinsured, and the supplier can pay the amount of damage on the comprehensive insurance. reject or reduce. If you pay the damages to the other party in the accident as part of your liability, you will claim at least part of the sum from the policyholder. A few hundred miles isn’t usually a problem, but false information above the four-digit range can have unpleasant consequences.
Car insurance: a few hundred kilometers does not matter
Therefore, an honest statement is important. But should you limit your mileage to get a cheaper rate? Most of the time it’s not worth it. Because insurance companies do not calculate exactly to the kilometer, but in ranges: 10,000, 15,000 or 20,000 kilometers a year are popular limits. It doesn’t matter if someone reports or drives 12,000 or 14,000 kilometers.
In addition, many car owners have long enjoyed a claim-free discount, so the difference between two mileage classes is practically negligible.
Auto insurance: Please report mileage changes
Important to know: Yes, perhaps due to a moving or a new job, the annual mileage changes, this must be reported to the insurance company. Of course, that can be a little more expensive, but vice versa, with fewer kilometers it can also be cheaper. (me)