# Car insurance limited mileage



## Soapybubbles

Last year,like every year I do a go compare for the cheapest policy on my car insurance, I average 3k/3.5k miles per year (gocompare always ask how many miles I expect to cover for the year) so when I took out the policy last year the next day I got sent a mileage declaration form to fill in and sign(never had this before and wasn’t aware this was going to happen ) my policy is up in 10weeks time and my limited mileage is nearly reached. 

They want the usual £30 admin fee plus £20 odd quid to add some mileage onto the policy until the end of the policy.

I only pay a touch over -£200 for the full year. 

I’m thinking I should just cancel the policy and re insure for this policy year early as it’s not really worth paying over a quarter of the yearly cost for a few weeks mileage added on. Only drawback is I would lose a year of no claims discount if I end the policy early. 

Thoughts on what I should do.


----------



## Kerr

You'll probably have cancellation fees too. You'll probably end up out of pocket no matter what you do. 

Some insurance companies all you to make changes online that don't result in the £30 admin fee.


----------



## Soapybubbles

Kerr said:


> You'll probably have cancellation fees too. You'll probably end up out of pocket no matter what you do.
> 
> Some insurance companies all you to make changes online that don't result in the £30 admin fee.


Never heard of a cancellation fee before. But I have cancelled insurance before and received money back (I always pay for the year up front)

I suppose I could just take another policy out and not even bother contacting the current insurer.

There is no online adjustment amendment with this company unfortunately


----------



## Darlofan

Have you still got a copy of declaration form? Might be worth reading to see if any flexibility on what you've declared.

Other option when is renewal due? You say few weeks but you should get renewal quote with no claims proof 4 weeks before it's due. If so you could renew insurance a month early with new no claims added. Can't see why they would charge to cancel though if you've paid already.

Or you take the risk for a few weeks.


----------



## Shiny

There are a few variables here, I'm assuming you have a limited mileage endorsement on your policy as they requested a mileage declaration? This would be different to the normal "estimated" annual mileage.

What are the terms of the limited mileage restriction? It varies from Insurer, but it may just be a case that a higher excess applies if you exceed the limited mileage.

Check your original TOBA for the fees. If they have, for example, a £50 cancellation fee, you may get a £20 refund on your policy, but will owe them £30 once they have applied their fee.

You can't leave it running and take out another policy. There will be a conflict in the MID and you will have dual insurance. You also won't be able to provide any NCB proof.

If you Insure 4 weeks early when you get your renewal notice as suggested above, your new Insurers will charge you 4 weeks on nil NCB as the NCB won't be transferrable until 4 weeks time.

My recommendation would be to:

1. Find out what the terms are for exceeding the agreed milage 
2. Find out where you stand with fees etc if the policy is cancelled
3. Compare the cancellation fees to the £50 additional premium and work out which is the best route to take


----------



## Soapybubbles

This the form I was sent to fill in.

I wasn't aware it was a limited mileage policy before hand.

If I had known I wouldn't have taken it out.


----------



## Shiny

OK so they may refuse indemnity if you exceed the agreed mileage, so you will either need to pay the additional premium or cancel the policy and insure elsewhere.

Unfortunately it is all a bit late now. You would have had 14 days cooling off and should really have made it an issue at inception when you were required to sign the mileage form.


----------



## Soapybubbles

Shiny said:


> OK so they may refuse indemnity if you exceed the agreed mileage, so you will either need to pay the additional premium or cancel the policy and insure elsewhere.
> 
> Unfortunately it is all a bit late now. You would have had 14 days cooling off and should really have made it an issue at inception when you were required to sign the mileage form.


I did call and tell them I wanted to cancel but they assured me i could add mileage on for £10-£20 at the end if the policy if need be ( obviously to keep my business) which was a slight lie in their part.

Just to confirm if I cancel policy I will only lose this years no claim entitlement and I'm then free to start a new policy elsewhere?


----------



## GeeWhizRS

Soapybubbles said:


> I did call and tell them I wanted to cancel but they assured me i could add mileage on for £10-£20 at the end if the policy if need be ( obviously to keep my business) which was a slight lie in their part.
> 
> Just to confirm if I cancel policy I will only lose this years no claim entitlement and I'm then free to start a new policy elsewhere?


I would alway try to get them to put that sort of thing in an email so you have a reference if need be. I find people tend to have short memories when it suits.


----------



## Andyblue

Soapybubbles said:


> I did call and tell them I wanted to cancel but they assured me i could add mileage on for £10-£20 at the end if the policy if need be ( obviously to keep my business) which was a slight lie in their part.
> 
> Just to confirm if I cancel policy I will only lose this years no claim entitlement and I'm then free to start a new policy elsewhere?


Sorry, I don't get this - am I missing something here ?

You took out a limited mileage policy and got a good price for the insurance, which you went with, signed the documents and stated your mileage. 
You've around 10 weeks left on your policy, which your considering cancelling because they want to charge you more premium as you've gone over your stated mileage limit - why would you cancel your policy, why not just let it run, pay the small amount they're quoting and look elsewhere next time and don't either take a limited mileage policy out or increase your mileage ?


----------



## Darlofan

Cheaper to get someone to wind the Speedo back😂


----------



## Soapybubbles

Andyblue said:


> Sorry, I don't get this - am I missing something here ?
> 
> You took out a limited mileage policy and got a good price for the insurance, which you went with, signed the documents and stated your mileage.
> You've around 10 weeks left on your policy, which your considering cancelling because they want to charge you more premium as you've gone over your stated mileage limit - why would you cancel your policy, why not just let it run, pay the small amount they're quoting and look elsewhere next time and don't either take a limited mileage policy out or increase your mileage ?


Because they want around a quarter of my yearly policy amount for what's literally going to be around 3-4 weeks worth of mileage (I'm not over the mileage yet but I will be by the time I'm 4 weeks away from the policy ending)


----------



## Soapybubbles

Darlofan said:


> Cheaper to get someone to wind the Speedo back


I have considered disconnecting my Speedo head!


----------



## Darlofan

Soapybubbles said:


> Because they want around a quarter of my yearly policy amount for what's literally going to be around 3-4 weeks worth of mileage (I'm not over the mileage yet but I will be by the time I'm 4 weeks away from the policy ending)


For 4 weeks I'd be risking it.


----------

