Limited Mileage Policies

[Dan-]

With these limited mileage policies where you have to declare your mileage at the start and end of the policy, what is to stop it being cheated. For example if you say you do 3000 miles per year but you really do 5000. Then couldnt you tell insurance the cars mileage is 2000 higher than it actually is. For example, when you bought the car it had done 38k but you tell the insurance 40k then when it comes to the end of the policy its done 43k.I know this makes the first 2k miles risky but do they actually check up on you?

 

[Chris_786]

IIRC there is Limited mileage and estimated mileage, is it limited that you have 100%?

 

[Gally]

I'll tell you this. Go do a quote and change the miles from say 5000 to 8000 and see how much difference it makes. Probably none.

There is usually a threshold, just like the est market value. The more you value it at doesn't change the premium per year. I think the threshold is 30k for est value.

You'll get paid out a certain amount anyone unless you agree a settlement figure before taking out the policy Ie on classic cars.

 

[pendulumx]

The checking up will only come if you have an accident.

 

[Revels]

Your theory works but what if you crash at 39k?

 

[widdo]

Adrian Flux do this on some of their policy's. I have a peugeot 106 cheap s**t that i run to work and back. £295 a year TPFT with 1000 miles a year. £650 with 6000 miles a year. I was never going to claim, if the car got wrote off, burnt or whatever. However this years policy worked out cheaper with Admiral. And there prices didnt budge with any mileage change under 10000 miles.

 

[Dan-]

when i first started driving i got a quote and they said est mileage and i just said 3k because i never really considered it. Anyway tht was estimated mileage and ive had tht at 3k for 2 years although i do roughly double, because my current provider just dont seem that bothered. But now ive just set up a policy with someone else and they want to do all these limited mileage forms saying i wont exceed 3k miles. Not keen on my mileage being policed, Ive redone the quote and it goes up quite a bit when i put it up to 6k.

Your theory works but what if you crash at 39k?

Well not crashing is always my plan A, but technically you havent exceeded their mileage.

Do you think it would be cheaper to add the miles on later on in the policy?

 

[Gally]

Really what you're doing is trying to get a cheap policy by lying.

Right?

 

[Dan-]

No just interested in loop holes

 

[sbridgey]

they use the MOT certificate don't they, so i would count the MOT during the insurance year as 0 milage if you see what i mean

 

[Alex_225]

Potentially on a car that has an MOT year to year they could check as the mileage is registered on the MOT.

The problem mainly comes down to if you crash to be honest as there's not really any other way they'd check it.

I actually have limited mileage on both my cars but that's because I don't do the driving. What I have noticed is that if you leave the policy up at say the average (about 12k) it'd work out cheaper to drop it to a limited mileage of say 5k. It is cheaper but not by enough to risk lying on the policy anyway.

 

[Gally]

I'm glad people don't know how insurance companies really work.

 

[Eddie.]

How does it work with estimated mileage gally? Like if you drift 1000 miles over, what sort of thresholds do they have for that?!?

 

[Gally]

Let me ask you a question.

When was the last time the insurance company asked you for your mileage?

When was the last time they checked your yearly mileage?

 

[fletch8]

mines 'limited' i think (99%)

i had to send off a declaration etc when i first took out the insurance.

However other people also use the car so my own personal milage would be less anyway

 

[markhinton]

they use the MOT certificate don't they, so i would count the MOT during the insurance year as 0 milage if you see what i mean

This is what I was going to say, there's no way around it. It's a guide, if you state you do 5000 or 15000 there won't be much difference in the price!

 

[Ollie82.]

I'm glad people don't know how insurance companies really work.

Underhand, misleading, money grabbing. All words ive heard used to describe the way they operate. Most of them came from my old man....all pretty much bang on the money as well.
He was a senior engineer for Direct Line/RBS so was well placed to know how they work and i must say, he wasn't far wrong.

 

[Dan-]

I'm glad people don't know how insurance companies really work.

How come?

Let me ask you a question.

When was the last time the insurance company asked you for your mileage?

When was the last time they checked your yearly mileage?

They want to know what it is from when the policy starts in december and i reckon i do about 6000 a year but i would like the bring it down by cycling to work.

 

[LY04 GAV]

Normally if it was a proper limited milage police they would fit a tracker to make sure you don't go over .

 

[Gally]

Underhand, misleading, money grabbing. All words ive heard used to describe the way they operate. Most of them came from my old man....all pretty much bang on the money as well.
He was a senior engineer for Direct Line/RBS so was well placed to know how they work and i must say, he wasn't far wrong.

Haha! Good old Direct Line. We actually just ended out contract with them after nearly 20 years iirc. They were actually my favourite work provider because they still use external engineer instead of imaging monkeys.

I'm not going to go into the ins and outs of insurance companies and their practices, i'm just glad I know what I know.

How come?




They want to know what it is from when the policy starts in december and i reckon i do about 6000 a year but i would like the bring it down by cycling to work.

Well that is a set mileage not an estimated mileage. Different insurance companies have different policies also.

 

[skyinsurance]

No just interested in loop holes

When it comes to insurance you don't really find many loopholes and if you do, they generally lead to your insurance being invalid when you claim.

 

[skyinsurance]

Underhand, misleading, money grabbing. All words ive heard used to describe the way they operate. Most of them came from my old man....all pretty much bang on the money as well.
He was a senior engineer for Direct Line/RBS so was well placed to know how they work and i must say, he wasn't far wrong.

Probably the most hated industry in the UK.

 

[Dan-]

When it comes to insurance you don't really find many loopholes and if you do, they generally lead to your insurance being invalid when you claim.

I've just decided to take the hit and add more mileage to the policy

 

[Gouldy]

With these limited mileage policies where you have to declare your mileage at the start and end of the policy, what is to stop it being cheated. For example if you say you do 3000 miles per year but you really do 5000. Then couldnt you tell insurance the cars mileage is 2000 higher than it actually is. For example, when you bought the car it had done 38k but you tell the insurance 40k then when it comes to the end of the policy its done 43k.I know this makes the first 2k miles risky but do they actually check up on you?

i had a limited mileage policy on my 182 that worked really well for me. i declared all modifications, coilovers, exhaust etc etc etc and the price was still reasonable too.

basically my policy was with brentacre (who i strongly recommend) and it was IIRC around £600 PA comprehensive with 6 years NCB, mods declared and a mileage cap of 3000 miles a year.

now, that's a low mileage amount PA but the good thing about brentacre is that if you are nearing your mileage cap you can ring up and add extra miles in 2000 mile chunks. for example; i was nearing my mileage cap and i rang up, paid £60 for another 2000 miles taking my total miles i can do a year to 5000 and i was informed that if i near the cap again i can just simply ring, up and pay another £60 and get the cap extended again to 7000 miles a year.

i was happy with the policy tbh, and yes the insurance company will know if you go over the mileage cap. when you sign up for a policy such as this one you have to take a current mileage reading, fill out a mileage declaration and sign it. if you have a crash in your vehicle over the mileage limit on your policy then you are not insured. you will receive 6 (or 8 points depending on where you live) for having no insurance and you will personally be liable for all the legal costs, damage to the other persons vehicle and injury claims etc against you.

Its worth doing things properly, i'd recommend this type of policy because it worked well for me and i hope the info i have given has been helpful.

 

[danord]

Sorry to bring back an old thread, was in the same situation myself. Currently with Adrian Flux on a 5k limited mileage policy. Just rang them up as I thought I might have gone over the limit, turns out i have a few thousand left. However just wanted to give a heads up to anyone else who reads this.

I asked if when I come to renew or decide to let the policy lapse if they ask for a closing mileage. The lass I spoke to said no on both occasions. If i chose to renew I would just have to sign another limited mileage declaration again. So make of that what you will. Of course I'm not saying do anything illegal, they DO check the MOT certs for the mileage if they need to however.

If in doubt, just ring up. To add another 1k miles onto my policy was £31 with no admin fee's. This of course is dependent on the the policy, but it's not much to stay legit.