It recently came to my attention that about 1 in 4 drivers around the UK are making a simple mistake that results in them paying £68 more for car insurance.
Not only that, but if you continue to make this mistake then your car insurance becomes worthless, which means when it comes time to make a claim you won’t be able to.
Car Insurance: Timing is Everything
So what is this mistake you might be wondering? Basically, what it has to do with is when you apply for car insurance by filling in the online form.
One of the questions is “how many miles do you drive a year?” Well, it appears that 25% of drivers guess the answer because they don’t really know, but most of the time they end up guessing completely wrong, which means they pay way too much for car insurance.
Also, if you estimate and are way off the mark, then guess what…there is a possibility that your car insurance isn’t worth the paper it’s printed on.
Now of course, a car insurance company won’t tell you this, and will gladly take money off you month after month, but when you phone them to make a claim they will all of a sudden find the mistake and not pay out.
This is why it’s so important to get it right when you are filling in the form, and then keep the car insurance company updated if your circumstances change.
Of course, you can’t predict the exact mileage you are going to be driving over the next year. They don’t expect you to be able to do that.
25% of Drivers are Way Off
However, about 1 in 4 drivers are getting it completely wrong, and either overestimating so much that they pay way too much for car insurance, or underestimating to the point when their car insurance policy could be a complete waste of time.
So what are some of the ways to make sure this doesn’t happen to you? The easiest way is to simply check your most recent MOT certificate. This will tell you exactly how many miles you drove last year, which can then be used to estimate how many you are going to drive over the coming 12 months.
Another way? Consider installing a telematics device into your car, which then tracks exactly how many miles you drive. Car insurance companies then use this data to adjust the amount you pay each month, which means you always get it right.
Finally, if you estimated a certain mileage on your application form but your circumstances change, then make sure you contact the company to inform them of this.