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19 million low-mileage drivers are being overcharged for car insurance in the UK

Traffic on the M5 motorway, north of Bristol. Photo: Barry Batchelor/PA Archive/PA Images

About 19 million low-mileage motorists in the UK are in danger of being overcharged for car insurance, according to statistics released on Saturday.

Analysis of almost 2.5 million car insurance quotes by pay-by-mile provider By Miles, has revealed Brits who drive less than the national average may actually be paying more for their car insurance than higher-mileage drivers.

According to By Miles’ data, which is based on 2,466,055 customer quotes from car insurance companies on MoneySuperMarket, motorists who tell insurers they expect to drive up to 6,000 miles in a year pay an average of £233 more than those who say they’ll drive up to 12,000 miles. This runs contrary to the belief of many that the more you drive, the more you pay for car insurance.

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Department of Transport MOT data shows the average annual mileage of a car in the UK is 7,134, meaning up to 19 million motorists are in danger of being over-charged for their car insurance as they qualify as “low-mileage’” drivers.

According to James Blackham, co-founder of By Miles, Brits are paying too much because traditional car insurance policies don’t accurately reflect the number of miles driven.

Blackham said: “Those who don’t drive as much are being treated unfairly. They’re being charged more to subsidise the insurance of higher mileage drivers.

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“The current state of play presents motorists with a catch 22 situation – either tell the truth about how much you’re driving and pay over the odds, or lie to get the cost down but risk having your insurance invalidated when you need to make a claim.

“This needs to change. If you don’t use your car much, it doesn’t make sense to charge you the same as a longer-distance driver as the odds of you having an accident are significantly lower.”