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Whether you own a classic car
and only drive it to car shows or exhibitions, a runabout you only need on
rare occasions or any other reason why you only wish to cover a very low mileage every year
you may be to save a great deal of money by having a limited mileage car
insurance policy.
This is not to be confused with a normal car policy in which you are asked
to estimate your annual mileage! Whilst in this case the estimated mileage
can often be exceeded without any great problems, with a limited mileage
policy it is a fixed contract between you and the insurer which stipulates
firmly that the agreed mileage is not to be exceeded; and in exchange you
are likely to get a much lower premium than you would normally have to
pay.
The advantage; you could save a great deal of money. The disadvantage is
that if you are likely to exceed the agreed yearly mileage it would be
essential for you to contact the insurance company to let them know, and
you would be likely to be asked for an additional premium in the following
year. Failing to inform them could invalidate your insurance and you could
even find yourself having claims refused. Many companies require evidence of a low
mileage, in the form of MOT certificates or other documentary proof.
Where you keep your car would have a great deal of influence on the
premium; if it is sat outside your house on the roadway for 50 weeks out
of 52 the risk of damage could be quite considerable so premiums would be
high, or this type of cover could even refused be completely, but of
course under normal circumstances a vehicle which was suitable for limited
mileage car insurance would be a very special vehicle and the insurers
would expect it to be kept in a garage or other secure area whilst it was not in use.
A limited mileage car insurance policy is therefore not suitable for
everyone, but for the right vehicle under the right circumstances it could
save you a very great deal of money indeed.
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