Muddled mileage puts Brits at risk of overpaying on their motor insurance
Over a quarter of drivers (27%) guess their annual mileage, risking overpaying or even invalidating their car insurance policy
On average drivers overestimate the distance between cities by 14%
Nearly a fifth (18%) think that underestimating annual mileage has no effect on their insurance policy despite it potentially invalidating their cover
Over a quarter (26%) would find it helpful to know their exact annual mileage using a telematics car insurance policy
Uswitch.com encourages drivers to consider taking out a telematics motor insurance policy to help provide accurate information about their annual mileage and to avoid overpaying or invalidating their cover.
Over a quarter of drivers guess their annual mileage when applying for an insurance policy and risk overpaying on their car insurance, according to research from Uswitch.com, the price comparison and switching service. Drivers, on average, overestimate the distance between cities by 15%, equating to an additional 1,185 miles more than the 7,900 miles typically covered by motorists every year.
Annual mileage is one of the key factors insurers use when calculating drivers’ premiums, but just a fifth (22%) of drivers refer to their MOT certificates, which provides the previous year’s mileage, when applying for a car insurance policy. While overestimating your annual mileage could drive up your insurance premium, underestimating it could invalidate your cover.
Many drivers are confused about the implications of providing inaccurate information. Nearly a fifth (17%) say that underestimating their annual mileage will make their policy more expensive, while a further fifth (21%) say it will make it cheaper. However, less than half (48%) knew that providing inaccurate information could invalidate their policy.
The journey distance which most stumps British motorists is between Manchester and Sheffield, with drivers thinking it is nearly three times longer and overestimating the drive by 71 miles. Motorists also think there are 94 miles between Liverpool and Manchester, two and a half times the actual distance, while the distance between Cardiff and Bristol is believed to be 116 miles – considerably more than the 45 miles it actually is. Despite most drivers getting their miles muddled, 90% say they are confident in the accuracy of their predictions.
| Mileage muddles | ||||||
|---|---|---|---|---|---|---|
| Journey | Estimated | |||||
| Distance (mi) | Actual | |||||
| Distance (mi) | Difference | |||||
| (mi) | Difference | |||||
| (%) | ||||||
| Manchester – Sheffield | 110 | 38 | 72 | 190% | ||
| Manchester – Liverpool | 94 | 34 | 60 | 177% | ||
| Cardiff – Bristol | 116 | 45 | 71 | 158% | ||
| Manchester – Leeds | 105 | 45 | 60 | 133% | ||
| Manchester – Nottingham | 132 | 81 | 51 | 63% | ||
| Manchester – Birmingham | 125 | 86 | 39 | 45% | ||
| London – Birmingham | 154 | 118 | 36 | 31% | ||
| London – Leeds | 219 | 194 | 25 | 13% | ||
| London – Manchester | 218 | 200 | 18 | 9% | ||
| London – Liverpool | 232 | 212 | 20 | 9% |
Source: Uswitch research, December 2016
To help better track annual mileage, a quarter (26%) of drivers say they would find it helpful to monitor this information with a telematics or black box car insurance policy.
Rod Jones, insurance expert at Uswitch.com, says: “While many of us are guilty of relying on gut feeling when providing our mileage information when applying for a car insurance policy, misjudging the number of miles you drive in a year can have a real impact on your wallet.
“If you drive fewer miles than you predict you could easily cut the cost of your next policy. That’s why it pays to dig out your MOT certificates to pinpoint the number of miles you drove last year to help you to provide a more accurate estimate for the one coming up. It’s even simpler for drivers with a black box or telematics policy, as the technology will provide a precise readout of your annual mileage based on GPS data.”
Find out how you could save over £1,000 a year with Uswitch here.
FOR MORE INFORMATION
Rory Stoves
Phone: 020 3872 5613
Email: rory.stoves@uswitch.com
Twitter: @UswitchPR
Notes to editors
Up to £50 off policies marked with ‘January sale’. Discount applies to eligible quotes generated between 4 and 31 January 2017. Research was conducted by Opinium from 20th to 22nd December 2016 among 2,000 nationally representative UK adults.
When asked “What is the main way you estimate your annual mileage when you search for a car insurance quote?”, 27% said ‘I make an educated guess’, 22% said ‘I consult my MOT certificate’.
Respondents were asked “Which do you believe is the closest distance in miles when travelling by road, between London/Manchester/Cardiff and each of the following cities?: Birmingham, Manchester, Nottingham, Leeds, Bristol, Liverpool, Glasgow, Sheffield, Cardiff”. In total, respondents estimated there were 4,417 miles between each of the cities, compared to the actual distance of 3,865, according to Google Maps. The estimated figure is 15% higher than the actual distance.
When asked “What do you believe are the consequences of underestimating your annual mileage when giving this information to your car insurance provider?”, 17% said ‘My car insurance policy will be more expensive’, 21% said ‘My car insurance policy will be cheaper’ and 48% said ‘This can invalidate my car insurance policy’.
When asked “Would you find it helpful to know your exact annual mileage, tracked by a telematics / black box car insurance policy?”, 26% said ‘Yes’.
When asked ‘Which do you believe is the closest distance in miles when travelling by road, between Manchester and each of the following cities?: Sheffield, respondents estimated 110 miles vs 39 miles according to Google Maps.
When asked ‘Which do you believe is the closest distance in miles when travelling by road, between Manchester and each of the following cities?: Liverpool, respondents estimated 94 miles vs 35 miles according to Google Maps.
When asked ‘Which do you believe is the closest distance in miles when travelling by road, between Cardiff and each of the following cities?: Bristol, respondents estimated 116 miles vs 45 miles according to Google Maps.
When asked “How confident are you that your annual mileage estimates are correct?”, 48% said ‘Very confident’ and 42% said ‘Slightly confident’
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