Mileage restriction on insurance

[Varche]

OK so at renewal you get asked how many miles you are going to do next year?

You have a guess which is naturally on the conservative side. Half way through the year you realise that you are going to exceed the amount by 50 to 100%.

Any issues?
Should you tell the insurance company?
Would not telling them affect any claim you might be involved in?

In hindsight might be better to say haven't a clue mate to the question!!

[Kevin Wood]

Hmm. In theory it's a material fact that could affect the insured risk so if they particularly wanted to get out of paying a claim it's a route they could take. Far from clear-cut, though, I'd say.

On a true limited mileage insurance policy, though, there will be a clause stating that if the car covers more than the specified mileage then certain aspects of the cover become inoperative. I haven't seen this on a "standard" car policy but my kit car policy has it.

Incidentally, the basic level of third party cover legally required still remains on that policy above the mileage limit.

[John-R]

Also. I would have thought that to enforce this, the insurance company would ask for a mileage reading on the car at the point of taking the policy.

The only other way would be to check the previous MOT certificate and compare to the actual mileage at the point of a claim or at the end of the insurance year. Still very subjective as the MOT year and insurance year may not run concurrently.

[davethediver]

Also if a 'friend' was to borrow it third party on his policy and maybe rack up x 1000 miles then would that count against you as you haven,t as the insured party covered the miles?

IIRC it asked how many miles you will cover not the car

[pscocoa]

I would wait til I get near to mileage on policy and then tell them just in case something changes  - they may not bother too much as some insurers operate in bands - eg 10 to 12000 - they seem flexible below 15000. Sometimes you are asked to porvide details of mot mileages as said or service records in the event of a claim. Maybe ring up and just ask the question - anonymously if possible

[Kevin Wood]

I would wait til I get near to mileage on policy and then tell them just in case something changes  - they may not bother too much as some insurers operate in bands - eg 10 to 12000 - they seem flexible below 15000. Sometimes you are asked to porvide details of mot mileages as said or service records in the event of a claim. Maybe ring up and just ask the question - anonymously if possible

A mate with a kit car did just that. A couple of weeks before the policy ended he needed to extend the mileage by a couple of hundred miles to do a trip away.

He was told "You'll have to upgrade the policy from 3,000 miles a year to 6,000, that'll be £<3 figure sum>".
"But....  the policy has only 2 weeks to run".
"Doesn't matter. Next step up from 3000 is 6000".
"OK. Sod it. I'd like to cancel the policy and start a new one for 6000 miles, then".
"Can't cancel it with less than a month to run".
"OK. I'll just take out a new one, then".
"Can't have two policies covering the same risk simultaneously. 'puter says no".
"O----K. So, what's stopping me from going to another company and starting a new policy?"
"Nothing, sir"
"Bye..."