Insurance annual milage

[robj20]

Yeah i went on at lunch and updated it from 10k to 14k... £51 for the privilege but avoids any doubt if the worst happens.

Thanks for the opinions!

How old are you or what do you drive. £51 for a 4k adjustment. That's 25% of my total policy doing 21k a year.
I wouldn't have bothered adjusting it until renewal time, if they ever did claim you did more miles just say prove it. Your girlfriend, friend, wife could have been driving it and put those extra miles on.

 

[fRostiE]

32, Seat Leon FR Diesel, 180bhp variant... something like 12 years NCB

Also someone reversed into my parked car in nursery car park whilst i was inside dropping off and that sent me premium up by £75... so no doubt that plays into some kind of calculation somewhere.

My renewal was £377 last year, so 13% £ increase for 4,000 more miles.

My last car, Civic Type-R FN2 was cheaper to insure than the Leon... no idea why.

How does that compare to your age/car robj20?

 

[snapdragon69]

Basically the last line - all they can do is take the extra premium from any payout paid to the policyholder, or if they find out before, demand the additional premium and if they don't receive it, cancel the policy.


The Third Parties (Rights against Insurers) Act 2010.
Nothing you say to the insurer will stop the payouts to a third party, as long as the reg. no. is correct the third party claim is not concerned with the contractual arrangements agreed between the insured and the insurer.

The Consumer Insurance (Disclosure and Representations) Act (CIDRA) 2012
The insurer must ask appropriate questions and the consumer must answer them honestly and carefully. CIDRA imposes on the consumer a duty to take reasonable care not to make a misrepresentation. The standard applied is objective, being that of the reasonable consumer taking into account all relevant circumstances (such as the type of insurance and how it was sold). The particular characteristics of the individual consumer are only relevant if the insurer knew, or ought to have known about them.
Where the consumer gives incorrect information, CIDRA distinguishes between three types of misrepresentation:

• Reasonable.
• Careless.
• Deliberate or reckless.

Misrepresentations that are careless or deliberate and reckless are described as "qualifying misrepresentations" for which the insurer will be compensated if it can show that it would have acted differently had it known the true facts. There is no remedy if the consumer's misrepresentation was reasonable.
For a misrepresentation to be deliberate or reckless, the insurer must show that the consumer both:

• Knew that the statement was untrue or misleading, or did not care whether it was or not.
• Knew that the matter was relevant to the insurer or did not care whether it was or not.

Two presumptions assist the insurer:

• The consumer is presumed to have the knowledge of a reasonable consumer.
• If the insurer asks a clear question, the subject matter of the question is presumed to be relevant.

If the misrepresentation is deliberate or reckless (essentially fraudulent), the insurer may avoid the policy and can generally keep the premium.
If the misrepresentation is careless, the insurer's remedy depends on what it would have done had proper information been provided:

• If the insurer would have declined the risk altogether, it can avoid the policy and refuse any claim but should return the premium.
• If the insurer would have written the policy on different terms then those terms apply from inception. These terms may include different limits or exclusion clauses.
• If the insurer would have charged a higher premium, any claim can be reduced pro rata to the underpayment.

 

[robj20]

32, Seat Leon FR Diesel, 180bhp variant... something like 12 years NCB

Also someone reversed into my parked car in nursery car park whilst i was inside dropping off and that sent me premium up by £75... so no doubt that plays into some kind of calculation somewhere.

My renewal was £377 last year, so 13% £ increase for 4,000 more miles.

My last car, Civic Type-R FN2 was cheaper to insure than the Leon... no idea why.

How does that compare to your age/car robj20?

33, Mondeo 2lt 180ps. 18k miles 3 years NCB, of the top of my head its about £215.

 

[Iamzod]

Worst case scenario here is they would work out the difference & take the premium adjustment out of the pay-out, I used to work in insurance, seen it many times.

As for anyone running a quote for 1k miles, the company I used to work for loaded policies for anything under 6k miles so anyone doing this would pay more.

 

[Jono8]

Basically the last line - all they can do is take the extra premium from any payout paid to the policyholder, or if they find out before, demand the additional premium and if they don't receive it, cancel the policy.


The Third Parties (Rights against Insurers) Act 2010.
Nothing you say to the insurer will stop the payouts to a third party, as long as the reg. no. is correct the third party claim is not concerned with the contractual arrangements agreed between the insured and the insurer.

The Consumer Insurance (Disclosure and Representations) Act (CIDRA) 2012
The insurer must ask appropriate questions and the consumer must answer them honestly and carefully. CIDRA imposes on the consumer a duty to take reasonable care not to make a misrepresentation. The standard applied is objective, being that of the reasonable consumer taking into account all relevant circumstances (such as the type of insurance and how it was sold). The particular characteristics of the individual consumer are only relevant if the insurer knew, or ought to have known about them.
Where the consumer gives incorrect information, CIDRA distinguishes between three types of misrepresentation:

• Reasonable.
• Careless.
• Deliberate or reckless.

Misrepresentations that are careless or deliberate and reckless are described as "qualifying misrepresentations" for which the insurer will be compensated if it can show that it would have acted differently had it known the true facts. There is no remedy if the consumer's misrepresentation was reasonable.
For a misrepresentation to be deliberate or reckless, the insurer must show that the consumer both:

• Knew that the statement was untrue or misleading, or did not care whether it was or not.
• Knew that the matter was relevant to the insurer or did not care whether it was or not.

Two presumptions assist the insurer:

• The consumer is presumed to have the knowledge of a reasonable consumer.
• If the insurer asks a clear question, the subject matter of the question is presumed to be relevant.

If the misrepresentation is deliberate or reckless (essentially fraudulent), the insurer may avoid the policy and can generally keep the premium.
If the misrepresentation is careless, the insurer's remedy depends on what it would have done had proper information been provided:

• If the insurer would have declined the risk altogether, it can avoid the policy and refuse any claim but should return the premium.
• If the insurer would have written the policy on different terms then those terms apply from inception. These terms may include different limits or exclusion clauses.
• If the insurer would have charged a higher premium, any claim can be reduced pro rata to the underpayment.

Interesting that they can void it for deliberate/reckless misrepresentation's meaning the chap mentioned in this thread who only put down £1k might be in trouble in a claim.

As for the OP, sounds like he would be ok if it was a genuine bad estimate.

 

[bainbridge]

Some insurers increase the excess by £100 for each 1000 miles you go over your estimate.

 

[theone8181]

How old are you or what do you drive. £51 for a 4k adjustment. That's 25% of my total policy doing 21k a year.
I wouldn't have bothered adjusting it until renewal time, if they ever did claim you did more miles just say prove it. Your girlfriend, friend, wife could have been driving it and put those extra miles on.

Thats kind of where the system falls down, one of my workmates daughter has just passed her test and had a telemetry box fitted. It can't know whether shes driving or if her dad is so how does it work if somebody thats not the policyholder does something? (Assuming the other person driving a car is not on the policy themselves but is driving it on their own insurance?

 

[robj20]

Some insurers increase the excess by £100 for each 1000 miles you go over your estimate.

Like the post above points out, how do they know you added the miles. For instance your dad drives your car but isn't on your policy, but is covered third party via his own insurance.

 

[Rich1988]

Like the post above points out, how do they know you added the miles. For instance your dad drives your car but isn't on your policy, but is covered third party via his own insurance.

if they are using it regularly they should be on the insurance, third party cover provided to drive other cars is normally just for emergency/very occasional use. If they were doing enough miles on it to add much on the insurer could rightly argue they should be on the policy

 

[robj20]

if they are using it regularly they should be on the insurance, third party cover provided to drive other cars is normally just for emergency/very occasional use. If they were doing enough miles on it to add much on the insurer could rightly argue they should be on the policy

Lots of grey areas, what is deemed regular?
Whatt about someone with a trade policy? Loads of reasons extra non policy banned drivers can add extra miles what if 10 extra people all put very occasional miles on it. There is simply no way of proving the named insurers put the miles on the car.

 

[IC3]

.

 

[rodenal]

Some insurers increase the excess by £100 for each 1000 miles you go over your estimate.

Can you prove this? I highly doubt it would be allowable given the info referenced above

 

[Jono8]

Lots of grey areas, what is deemed regular?
Whatt about someone with a trade policy? Loads of reasons extra non policy banned drivers can add extra miles what if 10 extra people all put very occasional miles on it. There is simply no way of proving the named insurers put the miles on the car.

Well, there is if they investigated it enough. I suppose the simplest way would be if they could try to find out if you commute to work by car every day and work out the mileage from your address to work.

I agree, it might be difficult to 100% prove, but i guess if the insurance company thinks they are correct (ie that you are intentionally lying to them about the mileage you are driving) and that you would have to stand up and lie in court to challenge their decision they might go with it.

 

[Jamauk]

I've often wondered this with the mileage, if I had a car with a policy to only do 1000 miles a year, yet I'd lent it to someone who did a load of miles on their own drive other car policy, I then wrote it off causing a whole heap of carnage, would they refuse to pay out on the basis the MoT showed it had done over the 1k that year?

Slightly off topic, but I've often wondered similar with performance mods on cars. If you bought a car, you'd never driven that particular make/model before how would you know it had a remap, non standard brakes, different suspension, etc.

If for example someone who had never driven a Golf GTI before, bought it and wrote it off in the same week and on closer inspection the insurers found it was running a different map, where is the standing on this, would their insurance potentially be void and they don't get the payout? This could be an issue for someone who isn't mechanically minded buying purely on condition and not knowing it had non-standard parts, maps, etc. and where is the comeback on this if the seller (if known) denied any of it, "sorry officer, I didn't sell it with that map it must have been after I sold it".

 

[Jono8]

I've often wondered this with the mileage, if I had a car with a policy to only do 1000 miles a year, yet I'd lent it to someone who did a load of miles on their own drive other car policy, I then wrote it off causing a whole heap of carnage, would they refuse to pay out on the basis the MoT showed it had done over the 1k that year?

Slightly off topic, but I've often wondered similar with performance mods on cars. If you bought a car, you'd never driven that particular make/model before how would you know it had a remap, non standard brakes, different suspension, etc.

If for example someone who had never driven a Golf GTI before, bought it and wrote it off in the same week and on closer inspection the insurers found it was running a different map, where is the standing on this, would their insurance potentially be void and they don't get the payout? This could be an issue for someone who isn't mechanically minded buying purely on condition and not knowing it had non-standard parts, maps, etc. and where is the comeback on this if the seller (if known) denied any of it, "sorry officer, I didn't sell it with that map it must have been after I sold it".

From what was posted earlier, it seems that they could only void it if the misrepresentation is deliberate or reckless. If you genuinely had no idea it had a modification on it and had no reason to believe that it did, i am sure that would be fine, or at the very least a "careless" misrepresentation.