Motor insurance policies risked by wrong mileage
Drivers have been warned they could invalidate their motor insurance policies if they do not inform insurers of new average annual mileages.
MoneySuperMarket has said that inaccurate estimates could also result in rejected claims and unnecessary costs.
Many drivers adjusted their policies when they were working from home, but up to 76% of employees have now returned to the office at least three days a week.
Average mileage is a key factor for insurers when it comes to assessing risk and calculating premiums, with lower mileage often resulting in lower policies. But mileage estimates are not fixed and underestimating by several thousand miles could mean drivers are left uninsured and at risk of legal penalties.
Annual mileage
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.”
