New insurance data reveals how mileage REALLY impacts insurance costs

How simple driving error could cost you

Drivers have been warned how much their mileage could really affect their insurance premiums, with those clocking up the miles or overestimating potentially paying hundreds more each year.

New data from insurance comparison experts Quotezone has revealed the real impact annual mileage can have on the cost of car cover and the danger of voiding the policy should drivers get their mileage wrong.

The data shows a link between average annual mileage and insurance costs, with premiums rising steadily as drivers spend more time on the road.

While motorists driving fewer than 1,000 miles a year pay an average of £520.74, drivers covering 10,000 to 14,999 miles annually see their premiums jump to £581.54.

For drivers racking up between 20,000 and 24,999 miles, the average premium soars to £634.90.

Meanwhile, those who exceed 30,000 miles annually face a staggering £800.95 – around £280 more than the lowest mileage band.

The figures highlight how insurers, on average, view higher mileage as a greater risk, leading to steeper costs for frequent drivers – so it’s vital for drivers to estimate mileage accurately and try to reduce it where they can.

The more time a driver spends on the road, the greater the chance of being involved in an accident. Additional mileage also results in more wear and tear on the vehicle and an increased likelihood of mechanical issues.

Higher mileage can also mean more long-distance driving which involves a mix of road types, including motorways and unfamiliar routes, which can add to the likelihood of incidents.

Comprehensive policies might also see a larger rise in price with increased mileage, compared to more basic coverage, so it’s important to shop around and compare options.

To help drivers reduce the impact of mileage on their insurance premium, Quotezone have provided five tips including regularly reviewing their insurance coverage.

Greg Wilson, car insurance expert and CEO of Quotezone.co.uk said: “Our data highlights how mileage can be a huge factor in determining your insurance premium. Those who rack up more miles are statistically more likely to be involved in an accident or face mechanical issues, which is why insurance costs could creep up with the added risk.

“If you’re someone who drives a lot, it’s important to keep this in mind when budgeting your car insurance. It’s also vital to ensure that the information you’re inputting is accurate.

“It can be difficult to predict how many miles you’ll drive per year – the key is to keep an eye on it and update your insurance provider should your estimation start to change – failure to keep your policy updated could invalidate your car insurance altogether.

“It’s also important to help you find savings, if you predict you’ll do 5000 miles but in reality you do less than that, say 4000, then you could potentially save £40 a year.”

Five tips for reducing the impact of mileage on your insurance premiums:

1. Telematics or black box insurance

Consider switching to a telematics insurance policy, also known as “black box” insurance. This type of coverage tracks your driving habits in real-time, including your speed, braking, and the times you drive. Safe, low-mileage drivers often benefit from this kind of policy, as insurers will see that you’re a reduced risk and may offer lower premiums in return.

2. Plan journeys efficiently

If you’re going to drive, it’s a good idea to plan your journeys as efficiently as possible. Consolidate errands into one trip rather than making multiple shorter journeys, as shorter, more frequent trips can increase wear and tear on your car. Using apps to avoid traffic can also help you stick to the most efficient routes, reducing the amount of time spent on the road.

3. Consider your vehicle’s fuel efficiency

The type of car you drive plays a part in your mileage impact too. Vehicles with better fuel efficiency are often less expensive to insure, and if you’re driving less frequently, you’ll spend less on fuel. If you’re looking to lower both mileage and insurance premiums, choosing a more fuel-efficient or eco-friendly vehicle could be a smart move.

4. Use public transport or cycling

If possible, consider swapping out some of your car journeys for public transport or cycling. Not only will this reduce your mileage, but it could also save you money in the long run on fuel and maintenance costs. Many cities have excellent public transport networks that can help you get around without needing to rely on your car for shorter trips.  If your job has a hybrid set up, try adding an additional work from home day each week to help keep mileage down.

5. Review your coverage regularly

Your driving habits and mileage can change over time. If you’ve reduced the number of miles you drive or switched to more efficient transportation, it’s essential to review your insurance policy and ensure it’s accurate – incorrect or misleading information can invalidate your insurance policy, leaving you unprotected.

Quotezone helps over 4 million customers every year compare and find savings on all sorts of motoring products such as van, truck and young driver insurance.

Credit: Quotezone.co.uk