10 Things Your Insurance Company Knows About You

1. Annual Mileage

For example, on any insurance application you’re asked how many miles you drive on an annual basis. That number you provide (along with the many other answers you give) helps the insurance company assess your risk on the road. More miles mean you’re at a greater risk of being in a car accident. But does the insurance company check on the miles you’ve actually driven and compare it to the number you provided?

“Not unless the company performs an annual vehicle inspection,” says Thomas. Even then, vehicle inspections aren’t very common. Thomas says that an insurance company may request a vehicle inspection if your vehicle was in an accident and you got a cash settlement to get the work performed at a shop of your choosing (rather than one the insurance company chooses). The vehicle inspection is proof to see the work you were paid to get was actually done.

“Among the many things checked during a vehicle inspection is the mileage,” says Thomas. At that point, a red-flag could be raised about how much you actually drive the car and you may void your insurance coverage.

However, if you have a usage-based insurance provider, like Progressive’s Snapshot, all your miles can be verified with that system.

See Als0: What is Usage Based Insurance