Car insurance policies can be invalidated by simply guessing your mileage incorrectly when applying for cover. Insurance companies use vehicle’s mileage to calculate the perceived risk to other road users and this will work out how much you should be charged.
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Lying about the mileage you do may seem tempting to some in order to save money on monthly premiums.
However, claiming on your insurance when you have driven above your planned target could lead to policyholders refusing to pay out on claims.
According to price comparison website Compare the Market, motorists could even find it hard to get covered on a policy in the future if an insurer believes you have purposely attempted to mislead.
On the flip side, overstating your mileage as a precaution could mean motorists end up paying more per month than they should do.
Lying about the mileage you do may seem tempting to some in order to save money on monthly premiums.
However, claiming on your insurance when you have driven above your planned target could lead to policyholders refusing to pay out on claims.
According to price comparison website Compare the Market, motorists could even find it hard to get covered on a policy in the future if an insurer believes you have purposely attempted to mislead.
On the flip side, overstating your mileage as a precaution could mean motorists end up paying more per month than they should do.
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“Honesty and accuracy are the best policies when declaring your mileage, otherwise you could find your insurer refusing to pay out if you make a claim.”
The National Travel Survey reveals UK motorists use their private vehicles for an average of 7,800 miles each year.
Breakdown provider AA says motorists can check the mileage recorded on their MOT certificate for a good indicator of how many miles they use each year.
Mileage has to be recorded during MOT tests and if your travel habits have not changed much in recent years this would give a good indication of the figure that should be recorded.
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Overall mileage information can also be found online using GOV.UK’s MOT history checker.
Alternatively, simply working out the distance to a place of work and other regular commitments will mean you can offer a more accurate guess on annual mileage.
AA says motorists should calculate the distance to a place of work and other weekly habits such as shopping trips and social events.
Data from uSwitch revealed just over half of motorists said they were not aware providing wrong information could invalidate their policy.
The study also revealed 27 percent of all motorists guess their mileage on a car insurance application each year despite the devastating consequences.
The data also found just one-fifth of road users use their MOT certificate to work out average mileage despite its simplicity.
uSwitch insurance expert Rod Jones added: “While many of us are guilty of relying on gut feeling when providing our mileage information when applying for a car insurance policy, misjudging the number of miles you drive in a year can have a real impact on your wallet.
“If you drive fewer miles than you predict you could easily cut the cost of your next policy, That’s why it pays to dig out your MOT certificates to pinpoint the number of miles you drove last year to help you to prove a more accurate estimate for the one coming up.”
Motorists who may be on the edge of exceeding their mileage prediction are urged to use other forms of transport.
Go Compare also claims travelling fewer miles will also help motorists save money on fuel costs and car maintenance charges as vital parts may last longer before breaking.
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