Automotive

Car Insurance - Estimated Mileage Accuracy

  • Last Updated:
  • Jun 15th, 2015 10:47 am
[OP]
Jr. Member
Apr 30, 2014
151 posts
58 upvotes
Sudbury, ON

Car Insurance - Estimated Mileage Accuracy

I live in Northern Ontario and when I renewed my policy last year with TD I estimated a total annual mileage of 10,000 km. However, later during the year my work location changed and my commuting distance increased significantly and I ended up with an annual actual mileage of 30,000 km. I did not call TD to inform change in work location. Now I've got the policy renewal documents and wondering what implications it may have if I call them to inform change in estimated annual mileage? I understand my premium may increase for the next year, but can they make an issue as I went way beyond estimated mileage last year? Did I commit an insurance fraud by not informing TD last year about change in condition?
5 replies
Deal Addict
User avatar
Mar 1, 2005
4650 posts
1927 upvotes
Toronto
Can't help you but I'm in the same predicament, they transferred me from downtown to Oakville but I'm already 4 months into my policy and I paid the entire sum at once.
Sr. Member
Nov 2, 2014
964 posts
304 upvotes
Scarborough, ON
BeaverLiquor wrote:
Jun 14th, 2015 7:38 pm
Can't help you but I'm in the same predicament, they transferred me from downtown to Oakville but I'm already 4 months into my policy and I paid the entire sum at once.
Take it for what it is worth but it is a material change in risk and technically you are supposed to advise the insurer and they would update the policy accordingly midterm in your situation. They would send you an invoice for the small increase in premium. It is minimal (more than likely under $100 for the year and it would be prorated). Check out section 8. 1 (1) of the OAP 1 Owners Policy regarding statutory conditions "(1) The insured named in this contract shall promptly notify the insurer or its local agent in writing of any change in the risk material to the contract and within the insured’s knowledge".
[OP]
Jr. Member
Apr 30, 2014
151 posts
58 upvotes
Sudbury, ON
RobertSmalls008 wrote:
Jun 14th, 2015 9:45 pm
Take it for what it is worth but it is a material change in risk and technically you are supposed to advise the insurer and they would update the policy accordingly midterm in your situation. They would send you an invoice for the small increase in premium. It is minimal (more than likely under $100 for the year and it would be prorated). Check out section 8. 1 (1) of the OAP 1 Owners Policy regarding statutory conditions "(1) The insured named in this contract shall promptly notify the insurer or its local agent in writing of any change in the risk material to the contract and within the insured’s knowledge".
Thanks for your suggestion. I'll call them to correct the mileage in renewal document. But can the company charge me retrospectively for past year?
Sr. Member
Nov 2, 2014
964 posts
304 upvotes
Scarborough, ON
northstarbd wrote:
Jun 14th, 2015 9:58 pm
Thanks for your suggestion. I'll call them to correct the mileage in renewal document. But can the company charge me retrospectively for past year?
They won't backdate it, no need to. They will just update it going forward.
Deal Addict
Jan 21, 2015
1486 posts
68 upvotes
Toronto, ON
RobertSmalls008 wrote:
Jun 14th, 2015 9:45 pm
Take it for what it is worth but it is a material change in risk and technically you are supposed to advise the insurer and they would update the policy accordingly midterm in your situation. They would send you an invoice for the small increase in premium. It is minimal (more than likely under $100 for the year and it would be prorated). Check out section 8. 1 (1) of the OAP 1 Owners Policy regarding statutory conditions "(1) The insured named in this contract shall promptly notify the insurer or its local agent in writing of any change in the risk material to the contract and within the insured’s knowledge".
This.

For others out there, technically you are supposed to inform them of any changes to your commute as well as total mileage... as both of those are elements they used to calculate your insurance cost.

Top