19 million low mileage drivers over-charged for car insurance

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19 million low mileage motorists in the UK (those who drive less than the UK average of 7,134 miles a year) are in danger of being over-charged for car insurance

Analysis of 2.5 million car insurance quotes by pay-by-mile car insurance provider By Miles on MoneySuperMarket

On average, motorists declaring between 5,000 and 6,000 miles a year are being charged an average of £233 more than those driving up to 12,000 miles a year

New research shows that low mileage drivers are getting poor value for money from their car insurance.

UK pay-by-mile car insurance provider By Miles’ analysis of nearly 2.5 million car insurance quotes on comparison site MoneySuperMarket reveals that low mileage drivers (motorists who say they drive less than the national average) may actually be paying more for their car insurance than higher mileage drivers. 

Department of Transport MOT data shows the average annual mileage of a car in the UK is 7,134, meaning up to 19 million motorists are in danger of being over-charged for their car insurance as they qualify as ‘low mileage’ drivers.

This runs contrary to the belief of many people that the more you drive, the more you pay for your car insurance. According to the data, motorists who tell insurers they’ll drive up to 6,000 miles in a year pay an average of £233 more than those who say they’ll drive up to 12,000 miles.

Drivers penalised across the board

25 to 29-year-olds estimating 5,000 miles a year are paying £229 more than those driving 11,000-12,000 miles.

And even the most experienced drivers are also getting over-charged, with 50 to 64-year-olds driving 5,000 miles a year paying £100 more than those driving 11,000-12,000 miles.

Even those who have proved they are the safest drivers on the road, by building up between six to eight years of no claims discount while driving 5,000-6,000 miles a year, are still charged £100 more than those driving 10,000-11,000 miles a year.

According to James Blackham, co-founder of By Miles, motorists are paying too much because traditional car insurance policies don’t accurately reflect the number of miles driven. “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. Pay-by-mile insurance means that people who drive less are rewarded, and rightfully pay less.”

“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.”