If you exceed the mileage limit on your insurance and have a low-mileage discount or a classic car plan, you may see an increase in your premiums. You cannot really exceed the mileage limit on your insurance if you have a standard plan, however, since the average insurance policy does not involve a mileage limit.
Yes, you are asked to declare your annual mileage when purchasing an insurance plan. But this is not a strict limit, and exceeding your stated mileage will at most lead to higher rates when you renew your policy. After all, annual mileage is one of the factors auto insurance companies use to determine rates.
When Mileage Limits Can Impact Insurance
Low Mileage Discount
If you currently have a low-mileage discount applied to your insurance plan and you exceed the limit of miles per year, you will no longer be eligible to receive the discounted premiums. For example, in order to qualify for State Farm’s low mileage discount, you must drive less than 7,500 miles per year.
Your insurer may track your mileage and driving habits using telematics or a smartphone app, or they may ask you to provide proof of your mileage.
Classic Car Plans
Classic car insurance often includes specific driving limits that policyholders must meet to continue qualifying for coverage. For example, in Liberty Mutual’s classic car insurance plan, the car must be driven fewer than 5,000 miles annually. Failure to adhere to this restriction could result in you being dropped as a customer or not receiving a claim payout.
Pay-per-mile insurance charges a base rate for coverage and a small fee for every mile driven. These miles are tracked using a small device you plug in under the dash. The good news is that most pay-per-mile plans have a maximum number of miles that they will charge you for in one day. If you go over that mileage cap, you won’t be charged for those extra miles.
To learn more, check out WalletHub’s guide to how car insurance works.
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