Does mileage tracking affect insurance?

Mileage tracking can significantly affect car insurance in several ways:

Usage-Based Insurance (UBI)

Many insurance companies offer usage-based insurance offerings often called pay-as-you-drive or pay-per-mile insurance. Drivers who demonstrate eco-friendly driving habits and drive less than predicted can benefit from lower premiums.

Accurate mileage reporting

Insurers often consider annual mileage when calculating premiums. Drivers who provide accurate mileage data through tracking devices can ensure their premiums are based on their actual usage, potentially leading to cost savings if they drive less than estimated.

Safe driving discounts

Mileage trackers that monitor driving behaviour can provide data to insurers about your driving habits. Safe drivers can earn discounts on their premiums based on this data.

Mileage caps

Some insurance policies have mileage caps, beyond which the premiums increase or additional charges apply. Mileage tracking helps drivers stay within these caps, avoiding these extra costs.

Fraud prevention

Accurate mileage tracking can help prevent fraud. If a policyholder claims they drive fewer miles then they actually do to get a lower premium, mileage trackers can provide safer driving and potentially lower premiums over time.