What happens if you go over your mileage limit?

Consequences of Exceeding Annual Mileage Limit in Car Insurance Policies

Car insurance policies typically include a predetermined annual mileage limit. Exceeding this limit can have serious implications for your coverage.

Voided Insurance Coverage

One of the most severe consequences of going over your mileage limit is that it could void your car insurance policy. This means that you will no longer be protected in the event of an accident or other covered loss. If you are found to have exceeded your mileage limit after filing a claim, the insurance company may deny your claim and leave you financially responsible for any damages.

Higher Insurance Premiums

Even if your insurance policy is not voided, exceeding your mileage limit can still result in higher premiums. Insurance companies use mileage as a factor in determining your risk profile. Drivers who drive more miles are considered to be at a higher risk of accidents, so they may be charged higher premiums.

Additional Coverage Costs

If you need to drive more miles than your policy allows, you may be able to purchase additional coverage from your insurance company. However, this will typically come at an additional cost.

How to Avoid Exceeding Your Mileage Limit

To avoid exceeding your mileage limit, it is important to track your driving habits and adjust your policy accordingly. If you find that you are consistently exceeding your limit, you should contact your insurance company to discuss increasing your coverage.

Here are some tips to help you stay within your mileage limit:

• Use a mileage tracker: There are various apps and devices available that can help you track your mileage.
• Estimate your mileage accurately: When you purchase your car insurance policy, be sure to accurately estimate your annual mileage.
• Inform your insurer of changes in driving habits: If your driving habits change significantly, such as if you start commuting to work or taking frequent road trips, be sure to inform your insurance company so they can adjust your coverage accordingly.

By following these tips, you can avoid the negative consequences of exceeding your annual mileage limit and ensure that you have adequate car insurance coverage.