Mileage Based Car Insurance in the UK is a car insurance policy where the cost of the insurance policy is determined by a driver's mileage. When you drive more, you pay more, and when you drive less, you will pay less for auto insurance. The financial benefits of a mileage driven car insurance policy can be enormous.
Put simply, mileage based car insurance is based on how much you drive your car. It’s not for everyone - if you spend a lot of time on the road it might not be the best option because it could end up costing more than a traditional policy.
Mileage based car insurance works on the principle that the less you drive, the less likely you are to make a claim. Your insurance provider will monitor how many miles you drive to get an accurate picture of your driving, which allows for your premiums to be adjusted accordingly. The average UK car insurance cost £460 in 2020, so for those who use their car infrequently, or young drivers who struggle to afford premiums on standard policies, this could really reduce the cost of your insurance.
Of course, there’s the option to choose a standard insurance policy. However, if your car isn’t being driven regularly, this might mean you end up paying more than necessary. There are other options that are similar to mileage based car insurance, including:
The biggest benefit of mileage based insurance comes from the potential savings. If you use your car infrequently or only travel short distances, this type of car insurance might suit you.
If you’re being priced out of standard car insurance policies, mileage based insurance could get you the right cover at a lower cost. However, if you’re looking at this type of insurance for cost reasons, it’s important to think realistically about how much mileage you do.
Mileage based car insurance is a great choice. It is for drivers who don't cover much mileage and who might not want to pay for expensive extras. It's also a cost-effective choice for young drivers and those who spend a lot of time in the car, such as taxi drivers or couriers. Most insurance companies use a black box in your car to work out how much you drive. This allows them to provide cheaper premiums for people who drive less. Mileage based car insurance is for anyone who regularly drives more than 5,000 miles every year. It is available for almost all new cars (and some older ones).
If you are not sure if you should get mileage based car insurance, Parker’s can be of help and provide car insurance advice, click here
Mileage based insurance usually charges two rates:
Exact costs will vary as they would with any other type of car insurance. Generally, you can also add extras onto a mileage based insurance policy, such as:
These add-ons will also affect your premiums. To check how much mileage based insurance could cost you, compare the options now with Insuro
Mileage based car insurance is an alternative to the traditional method of charging customers. Which was based on their car model, vehicle category or driving history. It's designed to prevent insurance providers from overcharging people who do not make much use of their cars. The probability of having an accident is directly proportional to the distance driven in a given period of time. By monitoring this mileage, companies can decide how much an individual should spend on car insurance by comparing this information with the average cost per mile driven.
Mileage based car insurance takes into account how far your car travels. Depending on the policy you take out, you could pay less for your renewal each year, but it really depends on how much you drive. It's normally not available with an annual mileage allowance, only as standard. The amount of money you could potentially save will depend on how many miles you cover each year.