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Car insurance premium mileage

Last post Fri, Feb 17 2012, 2:45 PM by huckster. 3 replies.
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  •  Fri, Feb 17 2012, 2:45 PM

    Re: Car insurance premium mileage

    See if you can speak to their complaints or customer relations team. I can't see that it is reasonable for them to charge you the £35 fee. So the compromise may be to pay the relevant premium based on correct mileage and that they don't charge this admin fee.

    If you had done say an extra 2000 miles, then that would probably be no problem in the event of a claim. It has been flagged because of the double + mileage you have done.

    • Post Points: 5
  •  Fri, Feb 17 2012, 2:39 PM

    Re: Car insurance premium mileage

    Hi.

    Thanks for the reply. I checked the policy documents, and an increase in the declared mileage is not on the list of disclosures, but there may be a loophole in that it states a change in use of the vehicle must be declared. That would normally be only if you used the vehicle for business use, racing, commuting and such like.

    Not only will they be increasing my premium with an ex gratia payment, they will also charge me an extra £35 admin fee for changing the policy!

    My point is also that if you had declared say 4,000 miles p.a., and you actually did 4,001 miles, and then had an accident, your policy would be null and void because you had exceeded the declared mileage!

    Surely this can't be right?

    • Post Points: 20
  •  Fri, Feb 17 2012, 2:04 PM

    Re: Car insurance premium mileage

    Check your policy terms and conditions to see what you must advise them of.

    I would think that doing double the mileage you said at the start was something reasonable to be disclosed. I also think that the years Insurance premium should be based on the likely mileage for the year.

    You really want to avoid having an Insurance cancelled, as that could mean that many Insurers won't quote. The potential cost, if you had to go to a specialist Insurers, could be hundreds (if not thousands) over the years ahead. You might therefore not wish to pick a fight with the Insurers and then end up with more hassle.

    The Insurers would be wrong to cancel and I am sure the FOS would take a dim view, as they would view it as inadvertent non disclosure. But Insurers are increasingly cancelling policies and then dealing with consequences afterwards.

    • Post Points: 20
  •  Fri, Feb 17 2012, 11:51 AM

    Car insurance premium mileage

    Hello.

    I recently called my insurance company to declare a small accident, (door scraped on my gate post!), with the intention of making a claim, but I have subsequently cancelled the claim, as the repair was going to cost less than the excess. During the question period of the claim I was asked what mileage I had done on the car. I stated around 8,000 miles. When I took out the insurance, my average mileage used to be around 4,000 miles, and the annual premium was paid with this information, but this year I have covered a little bit more mileage. The insurance company have now told me that I have to pay them an extra immediate payment, as I have done more mileage than first declared, or the policy will be cancelled. This seems very unjust and unfair. Who knows what mileage they will actually cover in the year following the insurance renewal? Does anyone know if this is legal? Can an insurance company claim an ex gratia payment, mid term of an insurance policy?

    Regards

    Terry

    • Post Points: 20