I am currently enjoying the benefits of being having a low-mileage discount from my car insurance company but since I got promoted and will soon be transferred to a another branch, how will this affect my policy? Is there a need for me to inform my insurer?


Most car insurance companies calculate mileage discounts like the one you are currently enjoying annually or yearly. Meaning to say, as long as you do not exceed the average odometer rate that they require for a low-mileage discount, you are still on it. The catch is that average rates for this type of discounts differ in every company. There is not a specific number or rate that is common to all companies. This just means that this discount will depend on the company you have chosen to purchase your policy.

If being transferred to another branch will mean that you need to travel more, just make sure that when all are added up (the miles you have travelled for a year) you still are under the company’s average mileage rate. If not, then it is better to inform the company that you cannot keep up with the required average rate for a low-mileage discount anymore and thus, will opt for other available discounts. This is so much better than having to pay for the extra miles at the end of the year.

There will be a need to inform your insurer of the changes in your current status if you will not be availing of the low-mileage discount that you are currently enjoying anymore. Otherwise, the change in your work location is not something a car insurance company will look at as a significant change. This is not a thing that will prompt them to do investigations or have you on their “hot list.”

Another thing to be reminded of, your policy (should) specifies the certain things that you need to inform your insurer in case of abrupt changes in your current status. The examples of such are as follows: changes in drivers, change in vehicles, newly licensed household members and possibly if you are quite sure that you cannot already keep up with the average number of miles they require for you to be able to avail of a low mileage discount.

There is a need to inform your insurer of these things as you do not want to be misinterpreted or worse, be accused of illegally giving the wrong information which is actually a form of fraud. If matters between you and your insurer are clear, then a healthy relationship is maintained. This will give you an advantage for you will not be having problems in the near future.