Car insurance: Policeman on what happens to uninsured cars
Car insurance agreements are partly determined on how often a car is used with those on higher mileage policies likely to pay more. This means many drivers are likely to “low-ball” their figures and opt for one of the smallest mileage quotas in a bid to save money.
However, drivers who crash after exceeding this limit may not be eligible for payouts unless they have updated their policy.
This could see drivers forced to pay out on expensive car repairs and could become blacklisted from many firms in the future.
Daniel Briggs, spokesperson for Motorfinity has warned drivers to always “aim a little higher” to cover any unexpected journeys.
This could be vital in 2021 with drivers desperate to go on days out and holidays after a year spent in lockdown.
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Speaking exclusively to Express.co.uk, he said: “As mentioned earlier, car insurance premiums are evaluated on risk.
“The riskier the situation, the more you may pay, and predicting your annual mileage is no exception.
“When filling out your forms, you will be asked what your typical annual mileage count is.
“The more use your car gets, the more likely you are to have an accident and to need to make a claim.
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“The higher your annual mileage, the higher your premium is most likely to cost and that’s why some motorists may choose to low-ball their figure.
“It’s always recommended to aim a little higher, just in case you have to take any unexpected journeys throughout the year.
“Low-balling your figure could land you in hot water and invalidate your policy.”
However, increasing your annual overall mileage can have some consequences with many drivers possibly paying more than they need to.
Thousands of road users have been overcharged on agreements in 2020 after predicting they would cover a certain amount of miles before being asked to work from home.
Policies can be updated throughout the year to account for a change in circumstances but many may not realise this and forget to change their agreement.
Experts at Compare the Market confirm drivers can invalidate an agreement by underestimating their overall mileage.
They say dryers are more at risk if they are found to have deliberately tricked their insurance provider to get a cheaper cover.
Drivers who do this may find it hard to get cover in the future and will likely be forced to pay expensive premiums when they do.
Robert Lee, Underwriting manager at Aviva said it was “important” road users answered questions as best they can to ensure their policy reflects their overall road use.
But he warned drivers who accidentally underestimate cover would be able to update it at a later date if their circumstances have changed.
He said: “As with any matters relating to insurance purchases, it’s important that consumers try to answer questions honestly and give as accurate information as they can.
“Each individual will have different ‘unexpected’ trips. Personally, as I have young children, I’ve added 2,000 miles to my mileage to cover driving them to clubs, friends, parties, etcetera.
“If you’ve underestimated your mileage, most insurers will allow you to increase it.”
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