What happens if I drive more miles than what is estimated on my auto insurance policy? How auto insurance companies check if mileage reported is correct? If I underestimate my miles what are the consequences? Find answers to these and car insurance mileage brackets related questions below.
Many automobile insurance companies are ahead of that game now. They have their own way of estimating the mileage based on your details like how far is your work from home and so on. So, they calculate premiums based on estimated annual mileage on insurance policies. So, estimating yearly miles driven is becoming a key task for insurers in the process of calculating vehicle insurance quotes accurately.
Some insurers may just take your word on yearly mileage or be happy with occasional odometer reading. And a few companies would insist on installing a telematics device on your vehicle to offer you pay as you drive insurance.
Also, mileages are generally grouped together and they start making a real difference when you are out of the preset car insurance mileage brackets. You move into another bracket when car insurance mileage limit exceeded and may need to pay more. For example, under 3,000 miles would be very low mileage and you would most likely be required proof of mileage to get cheap auto insurance for low mileage drivers under limited mileage insurance policies. Second bracket would be around 7,000 miles and if you claim to be driving less than 7,000 miles you would again be required proof by most companies.
Middle bracket is where most people fall in and it would start from 10,000. Most people drive around 12,000 miles a year. If you said you are driving 12,000 but have driven 14,000 it wouldn’t really make much of a difference. But it could if you were driving 25,000 but claiming to be driving 18,000. 25,000 puts you in high mileage driver group and require higher premiums, while 18,000 may still be seen as somewhere in the average range.
Lying about car insurance mileage is considered a soft auto insurance fraud. It is unlikely that you would be charged with any crime and reprimanded by your auto insurer. Technically, companies can ask extra premium calculated based on your recently revealed correct mileage. However, they are not known to go to this length. The obvious problem is that you know you have been lying.
Furthermore, they can always ask your true mileage records. This would be recorded each time you take the vehicle for service. Also, some insurers ask the current mileage when they are offering quotations. If you are driving thousands of miles more than you reported to the company you may be taking chances with getting caught and penalized for it.
There are so many other ways of qualifying for auto insurance discounts that it would be silly to ignore them and try to cheat insurers in order to get cheaper car insurance rates. You can cut your rates by twenty percent easily just by shopping for auto insurance attentively. So, going about saving money on your auto insurance the right way always offer satisfaction of not getting outsmarted by insurers and peace of mind that what you have done now isn’t going to come back and bite you on the backside.