Going over the Insurance Mileage Limit...?

[Gonzo42]

We are now approaching the one year mark on our first RV. Our insurance was predicated on driving 3000 miles or less a year.

1. Is there some bad penalty for exceeding that?

2. Is buying a policy with a larger mileage limit worthwhile?

3. Do I have to report our mileage?

[LarryJM]

D.E.Bishop wrote:
I have ACSC(AAA) and they base rates on miles traveled. Years and years ago the "average annual miles" was 10,000 miles. Now it is around 12,000 miles a year. It is logical that if you drive say, 20,000 miles a year that your chance of being involved in a fender bender(your fault or not) rises, so your rates may rise too.

This is not a "LEGAL" limit that can be used against you in a civil suit for negligence.

ACSC has a much lower annual average usage for RVs than DDs. We do drive long distances during some of our trips but our rates do not change if we exceed the average for one year. If we exceeded the average for a few years, I'm sure they would want to know why.

A few years back we drove over 13,000 miles in our RV and because my daily driver is my towed and the odometer racks up mileage towing or driving, when we renewed our coverage there was a premium increase for the towed. I sent them a letter explaining 13,000 miles was not driving but towing, they reduced the premium to the previous years level.

We have been retired for a long time and our average miles driven was well established when our DD and family moved 50 miles away. The average annual mileage increased for my wife's car and they questioned why. Sent info, no increase.

Most insurances have a guideline for setting the average premium, check workmen's comp insurance rates, construction workers pay way more than painters or carpet layers, they have more injuries so it costs more.

Think you have made a VERY IMPORTANT POINT. These are not really "MILEAGE LIMITS", but mileage estimates used in the risk assessment sliding scale for insurance rates. I doubt if you happen to be over that number there is any penalty or legal downside ... now if you are asked and you give your insurance co. FALSE INFORMATION that is a whole different matter. USAA periodically requested the mileage numbers and verification of the vehicles use and I always use my best estimates based mainly on past usage. With just two of us, retired with 3 vehicles between us we put less than 10K miles/year total between the three and one get's driven less than 500 to 1000 miles/year. Of course I can prove my numbers since it is on my yearly state inspections and bi annual emissions certificates all of which I keep JUST IN CASE.

Larry

[tatest]

I understand it to be, for USAA at least, an estimate for establishing rates, rather than a policy limit.

I keep adjusting mine among three vehicles, as my pattern of use changes, but the estimates for any particular vehicle are generally higher than actual mileage, particularly for the RV which has not been on an extended trip since my wife died.

[down_home]

Don't know if they want to charge by mileage eventually but State Farm sent us a letter about attaching a GMS. It would save us money if we were good kids and nt go past the speed limit accidentally. I bet rating by mileage is in the equation too. Said no thanks. It's over a hundred miles each way to DRs. Been every day this week except today. Posponed them because it's my birthday and didn't want another jab or my eyes expanded.

[Cummins12V98]

Corky12 wrote:
We have mileage limits on car and truck. Agent calls every year and asks for odometer readings then our annual rate is adjusted for the next year.

Been with Farmers Ins for 35 years never have been asked for mileage.

[Cummins12V98]

Corky12 wrote:
We have mileage limits on car and truck. Agent calls every year and asks for odometer readings then our annual rate is adjusted for the next year.

Been with Farmers Ins for 35 years never have been asked for mileage.

[JJBIRISH]

that’s a new one on me to… I have been asked how far I drive to work… but never did I have to supply odometer readings or verify actual mileage on any vehicle…

maybe it because I have had the same insurance company for as long as I can remember, although it was bought by another company some time ago…

[pitch]

We report our mileage to USAA each year. There is no limit as such,but they use the info to set our rates with. Just because I tell them I anticipate driving 11k miles this year does not mean I am restricted to that.

[Beaker]

Saved money when DW and I retired when I told insurance co the mileage to/from work =0.

The insurance salesman filled our application for us over 30 years ago and had "pleasure" filled in for use. Has stayed that way since then.
It's been true on one of the vehicles since May this year.:)

[suprz]

I know progressive will ask how many days per year the rv will be used

[Gonzo42]

Our carrier is Mercury. Thank you all for the ideas, and I will start asking questions. Check the sig line for our RV. Just checked my mileage on my MPG spreadsheet, we have done 2,770 miles.

[D_E_Bishop]

I have ACSC(AAA) and they base rates on miles traveled. Years and years ago the "average annual miles" was 10,000 miles. Now it is around 12,000 miles a year. It is logical that if you drive say, 20,000 miles a year that your chance of being involved in a fender bender(your fault or not) rises, so your rates may rise too.

This is not a "LEGAL" limit that can be used against you in a civil suit for negligence.

ACSC has a much lower annual average usage for RVs than DDs. We do drive long distances during some of our trips but our rates do not change if we exceed the average for one year. If we exceeded the average for a few years, I'm sure they would want to know why.

A few years back we drove over 13,000 miles in our RV and because my daily driver is my towed and the odometer racks up mileage towing or driving, when we renewed our coverage there was a premium increase for the towed. I sent them a letter explaining 13,000 miles was not driving but towing, they reduced the premium to the previous years level.

We have been retired for a long time and our average miles driven was well established when our DD and family moved 50 miles away. The average annual mileage increased for my wife's car and they questioned why. Sent info, no increase.

Most insurances have a guideline for setting the average premium, check workmen's comp insurance rates, construction workers pay way more than painters or carpet layers, they have more injuries so it costs more.

[Bobbo]

When I insured my RV, the agent asked how many miles a year. More miles meant more money. When I said under 7,000 a year, he said if I ever had a claim, they would check the mileage to be sure I wasn't going over that limit. Of course, they can't tell if I have a huge year, they can just check the average. Since I have about 23,000 miles on a 7 year old RV, that averages out to less than 4,000 per year, so I am good.

[Campfire_Time]

Duck wrote:

Bamaman1 wrote:
When asked, tell the truth. If not asked, keep your mouth shut.

X2
Don

X3. Back when I had hair I worked only a few miles from home. Some years later and I started working a fair distance away. I called the agent to ask about that and he said he didn't hear me say anything about working farther from home. 😛

[portscanner]

kcmoedoe wrote:
I am surprised no one worries about the loophole a mileage limited policy could create. What if you ran into a van full of doctors, ....

I would be more worried about a van full of lawyers.

I am also curious, how much actual money are you going to save?

Adjusting the milage limits on different vehicles in the past has saved me $200 or more per year. That is two tankfuls of diesel, i.e. one camping trip!