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HomeCar Insurance ResourcesDo Insurance Companies Check Mileage?

Yes, they do in most cases.

It can be pretty confusing as to what exactly insurance companies use as metrics when they are setting their premiums. They all pretty well follow the same format. However, each insurance company is different and they will put priorities on different metrics. Many will ask about the mileage you are going to be putting on your vehicle.

Is My Insurance Void If I Go Over Mileage?

low mileage

Insurance companies can void your insurance for a variety of reasons. If you have been honest on your insurance application then most likely you would not have your insurance voided if you go over the mileage you indicated. Provided it was within a reasonable amount. However, if this were out by a few thousand km’s. Then the insurance company would be concerned as to whether you were honest on your application.

It could be that your driving circumstances changed since you signed up for your insurance. If there is a significant change then you must let your insurance company know about this. For example, when you got your insurance your commute driving was only 20 miles. Then you got a new job where your travel now increased significantly. You should let your insurance company know this. They may increase your premiums. It is still better than having your insurance become void because of the extra mileage.

Why Do Insurance Companies Ask How Many Miles You Drive?

Insurance companies are going to do as much as possible to make sure they don’t have to pay out any money through claims. Whenever your vehicle is being driven it creates a risk for the insurance companies. Therefore they are very interested in just how many miles you are putting on your vehicle during a year.

If you want to make an accurate estimate of your mileage then just track the amount of driving you to do in an average week then multiply this by 52 weeks to get an annual estimate. It won’t be exact, but it will be fairly close. If you are using the car mostly for commuting, just use google maps to determine the distance you travel each day to your place of business.

What Mileage Should I Get On Car Insurance?

High Mileage

In Ontario statistics show that the average mileage put on a vehicle in Ontario is about 16,000 km per year. If you are an average driver then this figure would roughly apply to you. If you were to put anything less on your insurance application if asked it might raise some concerns with the insurance company. However, it cannot be said often enough that every insurance company is different.

How Do Insurance Companies Verify Mileage?

Many will ask you your annual mileage each time you apply for insurance or renew it. If you are renewing this gives them a record to follow each year. Which may determine if your premiums will go up or down.

If you opt into user-based insurance the insurance companies will have other ways of tracking your mileage.

Commuting Mileage

Most insurance companies will ask how many miles you drive back and forth to work. Along with how many days per week. They will use these calculations to determine what you have declared as annual mileage on your application.

Each insurance company may have its own metrics that they use when determining if a vehicle is used for commuting

Some think that if they drive their car to the go station and take the train for the rest of their commute to work they are excluded from car commuting for work. Many insurance companies will still consider this as commuting. Being as it is something that is done on a regular basis. Although the overall mileage may be shorter per trip, compared to driving all the way to work.

If your insurance company is asking you to determine the use of your vehicle on your insurance application then you need to think very carefully about this and be honest with your answers.

Lying About Mileage Car Insurance


It is a big mistake to lie to vehicle insurance companies about anything when it comes to your application. They are professionals at knowing what the average mileage is for drivers. If you give a quote that is very low according to what you are claiming you are using the vehicle for. It will raise some red flags. What some insurance companies might do is request a mileage reading from you at random throughout the year. They are ten going to compare this to what you stated on your application.

Underestimating Mileage On Car Insurance

Insurance Companies realize that individuals can only give an estimate on their mileage. But they do expect this to be fairly accurate. If there is too much of a difference then it could raise some red flags.

How Does Mileage Affect Car Insurance

factors affecting car insurance

As said Insurance companies use a lot of different data for determining auto insurance premiums. Mileage affects the cost of insurance because it determines how much the vehicle is on the road. The more mileage the more risk for the insurance companies.

The Department of Natural Resources has come up with average mileage for vehicles in different provinces. The overall average is about 15,200 kilometers. The lowest mileage is in Newfoundland and Labrador.

Low Mileage Discount

Whenever you can get a discount on your vehicle insurance it is well worth it. Especially when you can take advantage of multiple discounts. How much you can save with a low mileage discount will all depend on the Insurance company you are using.

Some insurance companies are offering pay-as-you-go insurance.

The Pros And Cons:

If you are using your vehicle for commuting you need to weigh out the financial pros and cons of doing this. Aside from parking, gas, and wear and tear on the car what is it doing to your insurance rates. It might be far more financially productive to use public transit instead of using the vehicle. This may be especially true if you are in the high-risk category as a driver.

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