More than 19 million drivers are potentially being overcharged for his or her automobile insurance because of the ‘low mileage penalty’, consistent with new research. Motorists driving fewer than 7,000 miles a year pay on the average £180 quite people that drive more, consistent with pay-per-mile insurer By Miles’ analysis of knowledge from MoneySupermarket.

By Miles says that since the typical distance driven during a year is 7,090 miles, nearly 19.3 million drivers might be being overcharged. Here, Which? looks at why driving less could cost you more, and explains ways you’ll cut the value of your automobile insurance.

What is the ‘low mileage penalty’?

The way insurers price automobile insurance is complex, and an enormous number of things – including your age, claims record, and driving history – are taken under consideration. Mileage does play a neighborhood, but as this report shows, lower mileage won’t necessarily get you a lower premium. By Miles says that folks with low annual mileage are 50% less likely to form a claim overall – so it might be reasonable to assume that they might pay less for his or her insurance.

However, people that drive less actually pay more on average. Here’s an example: the foremost common mileage bracket from the info was 5,000 to 6,000 miles. People driving this far annually were found to be paying £215 quite drivers going double that distance (11,000 to 12,000 miles). Drivers aged 25 to 29 years are particularly hard hit, paying £239 more, but the penalty appears to exist across nearly all age groups. Only 17 to 19-year-olds and people over 65 are rewarded with cheaper premiums for driving fewer miles.