Car insurance prices could be slashed for low mileage motorists
Recent research showed that low mileage drivers are being ripped off with up to 19-million drivers at risk of overpaying. The data from car insurance firm By Miles found that motorists travelling between 5,000 and 6,000 miles each year paying hundreds more than higher mileage drivers. According to the stats, these drivers are foreign out up to £233 more than those driving 11,000 miles annually. On average, quotes for cars with an annual mileage of 5,000 to 6,000 is £809 while the price for 11,000-12,000-miles is £576.
These findings were based on car insurance quotes on comparison site MoneySuperMarket of 2.5-million cars between 1 July 2018 to 30 September 2018.
Department for Transport (DfT) data suggests that on average motorists will travel 7,134 miles a year on average.
Things such as a no-claims bonus which can be used to slash insurance costs can also see drivers pay more.
It found that motorists that have built up between six and eight years no-claims discount and drive 5,000 to 6,000 annually can be charged £100 more than drivers travelling between 10,000 to 11,000 miles each year.
James Blackham, co-founder of By Miles, said: “Those who don’t drive as much are being treated unfairly.
“They’re being charged more to subsidise the insurance of higher mileage drivers.
“The current state of play presents motorists with a Catch 22 situation – either tell the truth about how much you’re driving and pay over the odds, or lie to get the cost down but risk having your insurance invalidated when you need to make a claim.
“This needs to change. If you don’t use your car much, it doesn’t make sense to charge you the same as a longer distance driver as the odds of you having an accident are significantly lower.
One way drivers can slash their insurance is by using a pay-as-you-go premium.
Low mileage drivers could be overpaying on their cover
“Pay-by-mile insurance means that people who drive less are rewarded, and rightfully pay less.”
A report in iNews found that one driver managed to slash £280 off their insurance costs by switching to a pay-per-mile policy.
The 37-year-old was quoted £680 for his BMW 116 I Sport, which was incredibly high given the fact he has 18-years of no-claims.
With ByMiles he paid a £241.89 fixed annual cost, to cover his car while he’s parked and the 5.3p per miles. He stated that his first statement cost just 92p .
Tom Flack, Editor-in-Chief at MoneySuperMarket said: “It’s in our DNA to help drivers find the best deal on their car insurance, so it was a no-brainer to offer pay-by-mile insurance.
“We wanted to put the brakes on overcharging low-mileage drivers. If you drive less, you should pay less.
“It’s always been important to shop around and make sure you’re getting the best deal for your car insurance.
“That now includes looking at new technologies that offer drivers increasingly flexible ways of insuring their cars.”
Average quotes for cars with an annual mileage of 5,000 to 6,000 is £809 while the price for 11,000-12,000-miles is £576
ANNUAL MILEAGE ESTIMATE AND THE AVERAGE CHEAPEST QUOTE
0 – 1,000: £877.67
1,000 – 2,000: £830.40
2,000 – 3,000: £757.33
3,000 – 4,000: £745.90
4,000 – 5,000: £748.54
5,000 – 6,000: £809.01
6,000 – 7,000: £765.56
7,000 – 8,000: £745.75
8,000 – 9,000: £754.41
9,000 – 10,000: £662.47
10,000 – 11,000; £753.52
11,000 – 12,000: £576.42
12,000 – 15,000: £617.60
15,000 – 25,000; £698.56
Over 25,000 £981.56
Overall average quote: £755.18