Low-mileage car insurance

Low-mileage car insurance cover

✔ Driving less often?
✔ Driving shorter distances?
✔ You could get cheaper car insurance

Some people don’t use their car very often or don’t drive long distances. For those people, regular car insurance might be too expensive. That’s why some companies have made special car insurance policies for people who don’t drive much. These policies can be cheaper than regular car insurance.

Low-mileage car insurance policies can save money for people who drive only a little bit. Some policies let people pay based on how much they drive. That means they only pay for the insurance they need. Other policies can give people rewards for driving safely and not getting into accidents.

To find the best low-mileage car insurance policy, people should compare policies from different companies. Not everyone needs this kind of insurance, but it can be helpful for people who don’t use their car much.

What is low-mileage car insurance?

Low-mileage car insurance is a type of insurance designed for drivers who don’t drive their car much. This type of insurance is ideal for people who use their car to cover shorter distances or only drive occasionally.

Typically, if you drive less than 6,500 miles per year, a low-mileage car insurance policy can help you save money on your car insurance costs. Research conducted by By Miles, a specialist low-mileage insurer, found that drivers who drive between 5,000 and 6,000 miles per year pay an average of £210 more for standard car insurance premiums than drivers who drive 11,000 to 12,000 miles a year.

To save money on car insurance, it’s worth considering low-mileage policies offered by insurers. Many insurance providers offer policies that reward drivers for driving less, and this can result in lower premiums. Some insurance companies even offer pay-as-you-go options where drivers pay only for the miles they drive, which can be an attractive option for drivers who only use their car occasionally.

When looking for low-mileage car insurance, it’s important to compare policies from different insurance providers. This way, you can find the policy that suits your needs and budget. Choosing an insurance provider that rewards you for driving less could help you get cheaper cover and save money on your car insurance premiums.

How does low-mileage car insurance work?

Low-mileage car insurance typically works by using a pay-as-you-go policy, which involves fitting a tracking device to your car to measure how far you drive. This type of policy can be cheaper because the less you drive, the less likely you are to be involved in an accident. This means less risk for the insurer, resulting in lower car insurance premiums.

When you start the policy, you’ll normally pay a fixed annual fee to cover your car against theft, vandalism, or accidental damage while it’s parked. At the end of each month, you’ll be charged a per-mile rate for each mile you’ve driven. Your insurer will send you a tracker that you can easily plug in and use to transfer your mileage data to your insurer. You can usually review the system used in your pay-as-you-go car insurer’s app or website.

Some insurers have a mileage limit and allow you to top up in 1,000-mile blocks, while others let you pay just for the distance you’ve driven each month. If you need to make a claim, you do so in the same way as you would for a standard policy, including paying an excess fee.

Low-mileage car insurance policies can offer drivers more flexibility, particularly those who don’t use their cars frequently. By tracking how much you drive, insurers can offer lower rates to drivers who don’t use their cars as often or who cover shorter distances. To get the best deal on low-mileage car insurance, it’s important to compare policies from different insurers and choose one that suits your driving habits and budget.

Who can benefit from low-mileage car insurance?

Low-mileage car insurance policies can benefit drivers who don’t use their cars frequently or who cover shorter distances. If you use your car for your daily commute or to travel long distances, a regular policy may be more suitable.

However, low-mileage car insurance policies can work well for:

OAPs who don’t travel frequently: Older drivers who only use their cars occasionally can benefit from a low-mileage car insurance policy.
Students: Students who don’t own a car and only need occasional coverage when driving a family or friend’s car can save money with a low-mileage policy.
Employees who live close to work: People who live near their workplace and only drive occasionally can benefit from a low-mileage policy.
Second car owners: If you have a second car that you only use occasionally, a low-mileage car insurance policy can save you money.
People who rideshare to work: If you use a carpooling service or rideshare to work, a low-mileage car insurance policy may be suitable for you.
Classic car owners: If you own a classic car that you only use for car shows or events, a low-mileage policy may be more affordable.

The benefits of low-mileage car insurance include:

Lower premiums: Because you’re driving fewer miles, you’re considered to be a lower risk to insurers. This means your premiums can be lower than with a regular policy.
More flexibility: Low-mileage policies can be more flexible than traditional policies, allowing you to pay for the miles you drive or to buy coverage in blocks.
Better for the environment: By driving fewer miles, you’re helping to reduce carbon emissions and air pollution, which is better for the environment.

Overall, low-mileage car insurance policies can provide affordable coverage for drivers who don’t use their cars frequently or who only travel short distances. If you’re considering a low-mileage policy, be sure to compare quotes from different insurers and choose a policy that suits your driving habits and budget.

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What is considered low mileage?

The average car in the UK drives 6,500 miles per year, according to the Department of Transport. However, each insurer may have a different threshold for their low-mileage car insurance policy. If you travel less than the national average each year, it may be worth looking into a limited-mileage plan from your insurer.

How do I calculate my mileage?

When estimating your annual mileage for a standard car insurance policy, accuracy is important. However, it can be challenging to estimate your mileage accurately, especially if it’s your first time. To help, car insurance companies often provide some flexibility.

To get a rough idea of how much you drive each year, you can refer to your MOT certificates. These documents list your vehicle’s mileage at the time of testing, which happens annually.

It’s also important to consider any significant changes in circumstances that could affect your mileage. For example, if you have changed jobs or moved houses recently, your commuting distance will probably change. Additionally, if you have friends or family who move, your mileage may increase or decrease based on how often you visit. Finally, consider any planned long-distance driving holidays that could add to your mileage.

What happens if I provide incorrect information about my annual mileage?

It’s essential to provide accurate information about your annual mileage when taking out a car insurance policy. If you underestimate your mileage, it could lead to issues if you need to make a claim, especially if there’s a significant difference between the figure you provide and your actual mileage.

Inaccurate information about your mileage could result in your policy being declared invalid. This means that your insurer may refuse to pay out your claim, leaving you responsible for any costs. Additionally, underestimating your mileage could be considered insurance fraud, which is a criminal offence. If found guilty, you could face hefty fines and even imprisonment.

It’s important to note that some insurers may monitor your mileage through a tracking device in your car, which means they could easily discover any inaccuracies in the mileage you provided. So, it’s always best to be honest and provide accurate information to avoid any potential issues down the line. If your mileage changes significantly during the policy period, you should inform your insurer to avoid any problems in the future.

What should I do if I’m going to go over my mileage limit?

If you find yourself in a situation where you think you’re going to exceed your annual mileage limit, it’s important to contact your insurance provider as soon as possible. They may be able to adjust your policy to accommodate the additional miles. This could mean that you have to pay more for your insurance, but it’s better than having your policy cancelled altogether.

If you do go over your mileage limit without notifying your insurer or making any changes to your policy, you could end up invalidating your insurance. This could result in your claims being rejected, leaving you responsible for any costs or damages incurred in an accident.

It’s always best to be upfront with your insurer about any changes to your driving habits or circumstances. This will help ensure that you have the right level of cover in place and can avoid any potential issues down the line.

What are the different types of low-mileage policies?

Low mileage policies can be a great way to save money on car insurance if you don’t drive very often. Here are some of the different types of low mileage policies available:

Pay-as-you-go policy: This is a policy where you use a tracker to monitor your mileage. You pay a fixed annual fee when you start the policy to cover your car against theft, vandalism or accidental damage while it’s parked. You are then charged a per-mile rate for each mile you’ve driven at the end of each month.
Blackbox insurance: This type of policy is also known as telematics insurance. With one of these policies, your insurer will monitor how you drive, including how far you go, when you drive most, and how safe your driving is. Based on this information, your insurer may lower or raise your premium.
Short-term car insurance: If you only drive occasionally, temporary car insurance or short-term cover could work out cheaper than an annual policy. Short-term car insurance can last for a few days or months, and you insure the car only when you need to drive it.
Classic car insurance: This type of insurance is designed for owners of older cars that are primarily used for leisure purposes. If you have a classic car, you’re likely to drive it for fewer miles than you would your everyday vehicle, so a classic car policy could be a good option for you.

Do I still need car insurance when I’m not driving my vehicle?

It is a legal requirement in the UK to have car insurance if your car is kept on a public road or car park. Even if you are not driving your vehicle, it still needs to be insured in case of any accidental damage or theft that could occur while it’s parked.

However, if you have declared your car as Statutory Off Road Notification (SORN), you are exempt from needing insurance. This means that you have declared your car as being kept off the road, such as in a private garage, and you don’t intend to drive it. In this case, you don’t need to have insurance, but you also can’t legally drive the car on public roads until you have cancelled the SORN and insured the car again.

Will low mileage always reduce my car insurance premium?

Driving less and having low mileage could potentially lower your car insurance premium, but it’s not always guaranteed. Insurers take many factors into account when calculating your insurance premium, including your age, driving history, car model, and location.

If you reduce your mileage, your insurer might see you as a lower-risk driver, and offer you a lower premium. However, other factors such as your driving record could still increase your premium. For example, if you get a speeding ticket, your insurance premium could increase, even if you have low mileage.

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In general, low mileage is just one factor that insurers consider, but it could be worth asking your insurer if they offer a discount for drivers who travel fewer miles each year.

How can I reduce my annual mileage?

There are various ways you can reduce the annual mileage you do in your car, such as:

Carpooling with a colleague or friend who works nearby can help to reduce the miles you cover on your daily commute. This not only reduces the wear and tear on your car but can also help you save money on fuel and parking costs.
Choosing public transport, such as buses or trains, instead of driving can significantly reduce your mileage. This option is not only environmentally friendly, but it also reduces your car insurance premiums since you are driving less.
If you need to make short journeys, consider walking or cycling instead of driving. This not only reduces your mileage but also provides you with the added benefits of exercise and fresh air. Plus, it can be a fun and healthy way to explore your local area.

Compare low-mileage car insurance

Comparoo is an online platform that makes it simple and straightforward to find low-mileage car insurance policies from a range of insurance providers.

By using the platform, you can easily compare low-mileage policies with standard fully comprehensive, third-party only, and third-party, fire and theft policies. This allows you to choose the different options available to you and find the best car insurance policy for your specific needs and budget.

In addition, Comparoo provides you with valuable information about the policy features, benefits, and limitations, so you can make an informed decision.

Frequently asked questions

Is low-mileage classic car insurance available?

Specialist classic car insurance providers offer policies based on the assumption that classic cars are driven less frequently than regular cars.

Premiums may be adjusted accordingly, with some policies offering a discount for agreeing to a limited mileage. Others may impose mileage limits per year for classic cars.

Is there low-mileage car insurance for seniors?

Senior drivers over 60 who have a low annual mileage may be eligible for cheaper car insurance.

For drivers under 25, limited mileage policies may not be available. Seniors can check for specialist low-mileage coverage and should review the policy for any age restrictions. They should also consider options designed specifically for seniors, as they may offer better deals.

What should I put for my mileage on my car insurance?

When getting car insurance, it’s important to provide an accurate estimate of how many miles you drive each year. To do this, you can use the mileage history on your MOT certificate or compare your mileage from your annual service with the previous year.

It’s also important to consider any changes to your driving habits, such as retirement or travel plans. Underestimating could invalidate your insurance while overestimating could result in paying more than necessary.

Do car insurance companies check mileage?

Yes, car insurance companies may check your mileage, especially if you make a claim.

They may also compare your estimate with your MOT records. It is not advisable to underestimate your mileage to save on insurance, as it may lead to policy cancellation if your provider deems you misled them.

It’s crucial to provide accurate estimates and inform your provider if you’re likely to exceed your mileage limit.

Will low mileage always reduce my car insurance premium?

The impact of low mileage on car insurance premiums is not always straightforward, as insurance providers may also take other factors into account such as driving experience.

While low mileage can lower insurance premiums, it is not the only factor that determines the cost of car insurance.

Do I still need car insurance when I’m not driving my vehicle?

In the UK, it is a legal requirement to insure your car even if you are not driving it as long as it is on public roads.

To stop paying for insurance, you must declare it off-road by making a Statutory Off Road Notification (SORN) through the DVLA. Once you declare your car off-road, you cannot drive it on a public road and must park it in a garage, driveway, or private land.

It is important to remember that if your car is not insured and gets damaged while parked, you won’t be able to make a claim.

What is the lowest mileage for insurance?

To be eligible for low-mileage car insurance discounts, driving under 7,500 or 8,000 miles per year is generally required.

However, some insurance companies may offer discounts if you drive fewer miles than the national average of 13,500 miles per year.

Does mileage matter to insurers?

Insurers consider mileage as one of the important factors when calculating car insurance premiums.

Underestimating the mileage on your policy can lead to the invalidation of your insurance policy, so it’s important to estimate accurately.

What is the average UK mileage?

On average, cars in the UK drive 20 miles per day, 142 miles per week, 617 miles per month, and 7,400 miles per year. – NimbleFins.co.uk