Advice Needed: Car Insurance - Exceeding Estimated Kilometers

AmorPax on 23/04/2024 - 19:08
Last edited 25/04/2024 - 11:40 by 1 other user

Hi OzBargainers, I hope you are doing well. I would like to get an opinion regarding Car Insurance.

I bought a new car last year and when I purchased my car insurance, there was a question regarding the estimated kilometres used for the car. I entered < 10k kms, but now I realize that I have driven around 19kms. The insurance company did not ask for my odometer reading when I bought the insurance, as it is a comprehensive one. This insurance will expire in around 3 weeks, and I plan to change my insurance company next month.

In case of an accident, will my claim be rejected because of this discrepancy?

Could you suggest what I need to do?

I understand that providing incorrect information may affect the validity of my insurance policy, but I'm uncertain about the best course of action in this situation. Your advice would be greatly appreciated.

Thank you.

EDIT: Thank you all so much for the suggestions and recommendations. I truly appreciate everyone taking the time to read and respond to my question.
I contacted the insurance company and spoke with both a sales rep and the claims department. As it is not mentioned in the Product Disclosure Statement (PDS), the mileage is treated as an estimate. According to the claims department, during the claims process, staff will not ask you about the current odometer reading as part of the standard protocol. of course, each insurance company operates differently.
Thanks again for your assistance.

Poll Options

4
Call the insurance company and report the correct mileage, resulting in an extra premium
23
I buy a new insurance as it will expire in 3 weeks' time
8
Leave it, as they most likely will not reject my claim in case of an accident

Automotive Car Insurance Insurance

Comments

randomusername2017 on 23/04/2024 - 19:15

+5

I'm uncertain about the best course of action in this situation.

Roll back the odometer
87percent on 23/04/2024 - 19:19

+2

If they’ve never asked you for a reading, how can they tell how far you’ve driven since you’ve had the policy?
- jv on 23/04/2024 - 19:36
  
  It was a new car at the start of the policy.
- mapax on 23/04/2024 - 19:36
  
  If OP is the first owner they will know and if it’s an older car they track that if OP happens to be in NSW.
MS Paint on 23/04/2024 - 19:20

+1

Just buy a new policy tonight and cancel the old one. Not worth the risk of claim rejection. You have dodged a bullet for the last 9k kms.

I hope you are doing well.

Thanks. You sound like a lovely person. I hope you are doing well also.
jv on 23/04/2024 - 19:35

-2

In case of an accident, will my claim be rejected because of this discrepancy?

Definitely.

Read the fine print on your policy.

You lied on that question.
- JimmyF on 24/04/2024 - 09:39
  
  You lied on that question.
  
  Did they? Maybe they didn't plan on driving so much at the time, so it wasn't a lie.
  - jv on 24/04/2024 - 10:00
    
    Did they?
    
    Yes.
    
    The question does not ask "Do you plan to drive more than 10,000km?"
    - JimmyF on 24/04/2024 - 10:15
      
      The question does not ask "Do you plan to drive more than 10,000km?"
      
      What does it say then jv?
      - jv on 24/04/2024 - 10:22
        
        @JimmyF: Go through the application process and read it.
        
        JimmyF on 24/04/2024 - 10:31
        
        @jv: Why don't you tell me?
        
        jv on 24/04/2024 - 10:52
        
        @JimmyF: Because I filled out the form a few months back.
        
        JimmyF on 24/04/2024 - 12:25
        
        @jv: So what was the question then?
        
        jv on 24/04/2024 - 12:38
        
        @JimmyF: It asked how many kms you will travel in the next year, not how many you plan to travel.
        
        JimmyF on 24/04/2024 - 12:39
        
        @jv: So the OP didn't lie then. They thought they would only travel 10k or under, so didn't lie like claimed.
        
        A lie would be they planned to travel 20k but selected 10k.
        
        jv on 24/04/2024 - 12:39
        
        -1
        
        @JimmyF:
        
        So the OP didn't lie then.
        
        They apparently lied in their application.
        
        They said they will travel less than 10K, but travelled more instead.
        
        JimmyF on 24/04/2024 - 12:51
        
        @jv:
        
        They apparently lied in their application.
        They said they will travel less than 10K, but travelled more instead.
        
        They didn't. This is the question GIO asks you for example.
        
        OK, and on average, how many kilometres do you drive in a year?
        Estimate how many kilometres you travel each year by multiplying your regular trips. E.g. 10,000kms a year equals about 833kms a month, or 192kms a week.
        
        It doesn't say will travel, it says ESTIMATE and average travel.
        
        So OP didn't lie if they thought they would only travel 10k when taking out insurance.
        
        jv on 24/04/2024 - 12:59
        
        @JimmyF:
        
        it says ESTIMATE and average travel.
        
        Yep, and it looks like they lied and did double what they said they would do.
        
        JimmyF on 24/04/2024 - 14:01
        
        @jv:
        
        Yep, and it looks like they lied and did double what they said they would do.
        
        You might need to look up the meaning of 'lied' as it isn't what you think it is.
        
        The OP has done double, they said that. They didn't set out to do that many kms.
        
        jv on 24/04/2024 - 14:03
        
        @JimmyF:
        
        You might need to look up the meaning of 'lied'
        
        lie: to say or write something that is not true.
        
        Synonyms: fib, mislead, delude
        
        JimmyF on 24/04/2024 - 14:08
        
        @jv:
        
        lie: to say or write something that is not true.
        
        But it was true at the time they wrote it.
        
        jv on 24/04/2024 - 14:04
        
        @JimmyF: Are you sure you aren't really Dan Jimmy?
        
        JimmyF on 24/04/2024 - 14:09
        
        @jv:
        
        Are you sure you aren't really Dan Jimmy?
        
        LOL Name calling… Cute from a spam account like yours.
        
        jv on 24/04/2024 - 14:23
        
        @JimmyF: I don't have a spam account.
        
        I've got no products or services to advertise here.
        
        JimmyF on 24/04/2024 - 15:51
        
        @jv:
        
        I don't have a spam account.
        
        I'm pretty sure most people here would say otherwise.
mskeggs on 23/04/2024 - 19:40

+5

When I added an additional 10k to mine it was $20. Just call them.
- jv on 23/04/2024 - 19:49
  
  -5
  
  Just call them.
  
  Nice trolling… 🤣🤣🤣
  - CrowReally on 24/04/2024 - 09:27
    
    +1
    
    Praise from Caesar
bobbified on 23/04/2024 - 19:44

+1

but now I realize that I have driven around 19kms

No, you didn't! 😁
boomramada on 23/04/2024 - 20:00

OP, which insurance company is it? Read the policy document. On those policies, if you go over the KM, you will have to pay higher excess when making a claim.
Or just call them and ask?
- jv on 23/04/2024 - 20:47
  
  -1
  
  Are you suggesting the asked here first before reading their policy's PDS ?
Nillionaire on 23/04/2024 - 20:02

+1

say bismillah before you drive and inshallah you will be okay👍🏻
bargaino on 24/04/2024 - 14:10

Relax, it is just an estimate. If you make a claim, and the odometer is higher, you just pay a higher excess.
No big deal.
billy72 on 25/04/2024 - 22:32

No need to worry; it's just an estimate based on your driving last year. However, from what I know, certain insurance policies have limits regarding this and may require you to install their app or set up their GPS device on your car.

Advice Needed: Car Insurance - Exceeding Estimated Kilometers

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