What are the consequences and what will happen if you exceed the mileage covered by the insurance?
If a person has a discount that is proportional to the mileage and the person has exceeded the mileage limit, then he will lose his discount (in this case, there is no need to pay any premiums). In cases where a person has a program for which there are no restrictions on the distance traveled, then in this case he will pay much more than in the previous case.
You can learn more about this below.
Consequences of Exceeding Miles
In the US, there are several companies (Allstate, Nationwide, Progressive, and others) that offer small discounts that will be based on the user's mileage (mileage) of the car. This is for customers who do not use their car much. Program details (mileage and discount amount) may vary from state to state and from company to company. You should check with your car insurance agent.
All companies do not charge additional fees for excess discounts. If the client loses the discount due to the excess mileage, the insurance agent will still assign the client a place in this program.
Discounts. Settlement periods
If the client has violated the conditions and exceeded the mileage (mileage is tracked using special programs and applications), then he (she) still has a place in this program. In this case, the client will begin to receive a discount only from the next month (provided that he (she) does not violate the conditions again if he does this, he will have to wait another month).
There are also programs according to which the discount calculation cycle is, for example, six months (this is mainly in the agricultural business). The client always has the opportunity to track the status of his discount through a special application and personal account (otherwise, you can call the insurance agent).
You can pay for the distance traveled
There are several companies that offer customers to pay for every mile they drive (these are Allstate and Nationwide). In this case, the client has no distance limits because the client pays as much as it takes to travel. Representatives of the company said that this program does not provide for any fees and restrictions for mileage, respectively, the client cannot be excluded from the program for overcoming more mileage than indicated in the agreement. "Drive more, you pay more," said a spokesman for one of the above companies.
You can find out more about auto insurance programs and more in our research on this topic.