You may pay more for your car insurance despite driving less

Up to 19 million low mileage motorists are in danger of being overcharged for their car insurance, according to a new report.

Those who drive less than the UK average of 7,134 miles a year are paying more for their insurance than higher mileage drivers – those who drive 12,000 miles and above – research by car insurance provider By Miles claimed.

It found that, on average, motorists declaring between 5,000 and 6,000 miles a year are being charged a huge £233 more than those who are driving up to 12,000 miles a year.

Price: By Miles found the higher the mileage a motorist had, the cheaper their car insurance

By Miles claim the reason for low mileage drivers being charged more is to subsidise the insurance of higher mileage drivers.

It said the insurance industry wants to keep its prices within an affordable range so they don’t want to charge high mileage drivers more than they’d pay for insurance.

This means they have to pass the true cost of the risk attached to these drivers on to the lower mileage drivers to subsidise the higher mileage drivers.

The insurance company wants to change this and is urging consumers to check their annual mileage to see if they could potentially save hundreds of pounds by switching to a pay-by-mile policy. 

Blackham continued: ‘Department of Transport figures show us that the average UK driver is only racking up 7,134 miles a year. This means that around 19 million low-mileage drivers are being charged more for driving less. This isn’t fair.

‘To work out if you’re one of them, take a look at your annual MOT certificate. This will show you how many miles you drove last year and help you make an educated estimate for the coming year. 

‘You could also look at your car’s service record, or just stick your reg plate into the quick quote on the By Miles website and we’ll check the DVLA database for you!

‘If you’ve driven below 7,000 miles a year you might be able to save by opting for pay-as-you-drive car insurance. It’s best to get a few quotes to compare prices and the level of coverage you’re getting. 

‘But whatever you do, don’t fudge the numbers – being caught out driving significantly more or less than you tell your traditional car insurer could invalidate your cover.’ 

By Miles is a pay as you drive car insurance company for those who drive less than 7,000 miles a year. 

Drivers with the firm pay a small upfront fee for an annual policy and are then billed at the end of each month for the miles they drive, which is measured by a small black box fitted to the car. 

This helps drivers who mainly use their cars at weekends or for short trips to save on their bills.