What impact does mileage have on car insurance premiums?

How Mileage Affects Car Insurance Premiums

When you buy car insurance, one of the questions you’ll always be asked is: “What’s your annual mileage?”

Annual mileage is simply the number of miles you expect to drive over the course of a year. It matters because the more you drive, the more time you spend on the road - and the greater the chance of being involved in an accident. That’s why mileage is an important factor in your insurance premium.

Key points in this guide:

• What annual mileage means and why insurers care.
• How mileage affects your premium.
• Why accurate estimates matter.
• Tips for calculating your mileage realistically.
• Options for low-mileage drivers.

What Is Annual Mileage and Why Does It Matter?

Insurers use your estimated mileage to assess risk. Put simply:

• Higher mileage = more time on the road = more chance of a claim.
• Lower mileage = less risk exposure = can result in less chance of a claim.

Can Driving Fewer Miles Save Me Money?

Yes - driving fewer miles may reduce your premium, but your policy pricing is unique to you and is impacted by many other factors.

For example:

• Reducing the miles you drive from 12,000 to 8,000 miles may reduce your premium.
• Reducing the miles you drive from 7,000 to 6,500 miles is unlikely to make a difference. 

Always give a truthful estimate of your annual mileage. If you provide incorrect information, your insurance could be voided or claims refused.

How to Estimate Your Annual Mileage Accurately

Here are some ways to work it out:

• Check your MOT records – they show yearly mileage changes.
• Calculate your commute – daily miles × days per week × 52.
• Use Google Maps for regular trips (school runs, shops, visiting family).
• Try an online tool like the AA mileage calculator.

Avoid guessing. A realistic estimate is enough - you don’t need to be precise down to the mile.

How Do Insurers Calculate or Verify Your Mileage?

Insurers generally rely on:

• Your estimate at quote or renewal.
• MOT history, which records mileage each year.
• Telematics policies (black box insurance) that track your actual driving.

If there’s a major discrepancy between your declared mileage and recorded mileage, it may raise red flags and could affect a claim.

Find out more about our telematics cover options.

Make Your Mileage Work for You

Mileage is one of the factors insurers look at when working out your premium. The most important thing is to give an honest estimate of how much you drive each year — it doesn’t have to be an exact figure, but a realistic one.

You could also save through a Telematics (black box) policy with 1st Central. Our Telematics product monitors how you drive and can reward careful driving habits, rather than simply how many miles you cover.

Remember:

• Mileage matters, but accuracy is more important than precision.
• Your driving style and habits play a big role in how Telematics affects your premium too.

Want to see how your driving could shape your price? Get a quote with 1st Central today.

Find out how your job and car value impact your car insurance for a full picture of what shapes your premium.

Find out if you could save you money - get a quote with 1st Central today.

H2 - FAQs

Will my insurer check my mileage?
Insurers usually rely on the mileage you declare, but they may verify it using MOT records, service history, or telematics (black box) data.

Does commuting distance count towards annual mileage?
 Yes. Your total annual mileage should include all journeys - commuting, day-to-day driving, and leisure trips.