If you’re wondering what happens if you exceed mileage on insurance, you’re in the right place, my friend. 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!
What’s the connection between mileage and car insurance?
Even though the mileage isn’t the only thing that determines your premium, it’s one of the main factors insurance companies pay attention to. Why do they even care about the number of miles you drive? – well, there are logical reasons behind that.
Insurance companies get the chance to calculate the risks of accidents with the help of the annual mileage. If you spend a lot of time on the road, you’ll have to pay more. The costs could even depend on your area as higher traffic rates increase the chance of accidents as well. Therefore, insurance companies need to know how “costly” you will be as a client and determine the premium accordingly.
When you fill out the forms, you will be asked about your annual mileage. This means that you should know exactly how much you’ll drive during that year. You shouldn’t play a guessing game here, because underestimating mileage could essentially invalidate your insurance. And if you don’t want to pay a lot of money for a policy that will be worthless, you’d better take your time and think carefully about upcoming trips with your pal.
Insurance companies usually have the right to check your mileage at any given time. They might even check it in the beginning, to make sure you won’t be able to lie. Either way, you should track your mileage to make sure you’re not exceeding estimated numbers.
Is the insurance mileage limit really a thing?
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 (it’s usually the case with low-mileage plans).
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 insurance?
To be honest, it depends on your 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 I told you 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 mileage or hiding that information doesn’t even make sense.
Will exceeding mileage on insurance increase your premium?
Most likely, it will. 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.
But this doesn’t mean that we can’t examine the previous tendencies and discuss this subject in a general context. The experience of many beneficiaries shows that exceeding mileage on insurance results in an increase in your premium. Once you notify your insurer, they will amend the existing plan and calculate a different monthly cost that’s more suitable for your current situation.
Your annual rates will increase by approximately 100-200 bucks if you drive 12,000 miles instead of 6,000. It won’t change if you exceed the estimated number by 500 or even 100 miles. But if you need a serious upgrade in your plan, then you should expect certain changes.
As we have seen, your premium might increase if you exceed your annual mileage, but those changes aren’t dramatic. You might have to pay an extra $6 a month, but that’s not too bad, is it? It’s still better than lying about it, don’t you agree?
Car insurance mileage limit exceeded? – here’s what you can do
If car insurance mileage limit 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 subsequent actions.
- Speak to your insurer whenever you understand that you’ve under or overestimated your mileage;
- Tell them if you notice that your mileage is exceeding your annual plan;
- 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.
These steps don’t seem too complicated or overwhelming, do they? If you follow them throughout the whole year, your insurance will remain valid for as long as you have it. That way, you’ll be sure that they will pay you out whenever you need to make a claim.
Of course, you should read their policy carefully to make sure you aren’t making other mistakes as well.
Car insurance mileage limit exceeded? – trust me, you don’t have anything to worry about. Just be smart about it, go through the necessary steps and you’ll be fine.
A mileage blocker – the easiest solution
To avoid exceeding your annual mileage on your insurance, you can also use the mileage blocker. It’s a device that stops recording mileage without leaving a trace. However, its main purpose is to help you check the functionalities of your vehicle in a safe, controlled environment.
By using an advanced tool such as the mileage blocker, you’ll be able to test your car religiously throughout the year. If you buy a quality kilometer stopper, you’ll be able to make sure everything is fine. In other words, the mileage blocker can be one of the main proactive tools to avoid exceeding insurance limits.
However, don’t forget that changing mileage on the car to trick insurance companies isn’t the most ethical tool you can do. Always make sure to use the mileage blocker in ethical and legal applications.
Car insurance mileage limit exceeded? – ask questions! That’s the most important takeaway here. Don’t be afraid to be meticulous and nag your insurance company about every single thing. It’s always better to know for sure what to expect beforehand than to deal with the consequences.
And one more thing: sometimes we think we’re saving up when we’re actually increasing our expenses. That’s exactly what we’re doing when we underestimate the mileage. It only takes a tiny amount of curiosity and math to be precise about your numbers. It’s easy to blame your insurance company for refusing to pay you out, but it’s a better idea to be careful from the very beginning.