INSURANCE 101 - MONEY SAVING TIPS: ODOMETER READING
WHAT'S THE BUZZ ABOUT ODOMETER READINGS?
Why do you want my odometer reading?
Your driving record is the number one rating factor for calculating your auto insurance premium. The second item is the annual miles you drive your vehicle. The California Department of Insurance requires that you provide your auto insurance company with your accurate odometer reading once every 12 months. If you decide that you do not want to provide your odometer reading then the California Department of Insurance allows your auto insurance
company to increase your annual miles driven by 1000 miles. This increase will apply to all your vehicles on your policy that are currently rated less than 13000 miles driven a year. The additional 1000 miles may not sound like much but if the extra 1000 miles a year bumps you into a higher annual mileage class your auto insurance premium will increase at your renewal ( mileage classifications start at 1000 to 3000 miles a year = class 1, and go up from there - call our office for additional information ).
13,000 miles a year - the California state average.
According to the California Department of Insurance, the average vehicle is driven 13,000 miles a year. If your vehicle annual miles is currently rated at the state average of 13000 miles, the insurance companies will not increase your annual miles by 1000 miles a year. If any vehicle on your auto insurance policy is currently rated less then 13000 miles annually, then the annual miles will increase once a year by 1000 miles until the vehicle reaches the California average of 13000 miles.
Timing counts: My annual miles went up on my new auto insurance renewal so did my premium - what can we do?
Your auto insurance policy renewal is issued 30 days prior to your new renewal term date. For example - if your auto insurance renewal date is May 1st, our office will get your renewal on our system April 1st. Now the clock begins to tick, if your annual miles was increased by 1000 miles we will need to get your exact odometer reading for the vehicle that was increased by 1000 miles as soon as possible. Once we get your odometer reading we can input your current exact odometer reading and see if you are driving less then then new updated renewal annual miles. If you are driving less we can amend your annual miles - if we lower your annual miles your rate will go down.
This takes team work by you the client to provide our office with your accurate odometer reading(s) as soon as possible, and our staff to check the computer and compute the miles driven for the vehicle . If you are driving less - we can adjust the annual miles driven to a lower rating classification of annual mileage.
The California Department of Insurance mandate on miles driven as a rating factor is not going away so the only thing we can do is keep up with accurate odometer readings.
Why not just bump my annual miles to 13000 miles and be done with providing my annual odometer reading?
Yes! allowing your vehicle to be rated at 13000 miles a year will eliminate the odometer reading requirement ( based on current Department of Insurance guidelines ). This could cause your premium to increase considerably. If we currently have a vehicle rated at 5000 miles a year and you are truly driving 4,000 to 5,000 miles a year it will be our goal to keep your TRUE miles at 4000 to 5000 - this will keep your rate from increasing because of annual miles driven.
Because we only have 30 days to get your accurate odometer readings and verify the miles on the computer - we need your help to get us the accurate odometer readings as soon as possible.
Did you get our voice mail message or email = Please provide our office with your current accurate odometer reading?
We are checking every clients renewal and if we see your vehicle(s) annual miles increase by 1000 miles, our goal will be to get your vehicle(s) current accurate odometer reading. The accurate odometer reading is very important, as an inaccurate odometer reading could make it look like you are driving more annual miles then is accurate.
Please respond to our request for accurate odometer readings as soon as possible, this will allow our staff to check your vehicle prior annual miles. If we can lower your annual miles we will. And if we do reduce your annual miles and update your odometer reading within at least 10 days prior to your renewal date there is a good chance we will get a new renewal out to you with the amended premium.
Annual miles can very during the year. Are you driving less?
Change of driving habits - ( not driving as many trips ).
Change of job - driving less miles to work (or school).
Retired, on disability or work leave.
Working from home, or working form home a few days a week.
Adding or deleting a vehicle on your policy.
Adding or deleting a driver.
Commuting to work - bus, train, car/van pool.
Questions? Give our office a call so we can discuss your annual miles driven.
As your agent we wear several hat's!
The odometer reading verification has become a way of life for policy holders in California, and annual miles driven could have a major impact on the auto insurance rates of many of our clients driving less then 13,000 miles a year. Our staff spends many hours a week working with our clients to help verify annual miles to make sure our client's are not being over charged for annual miles driven.
For addition information give our office a call.
Our goal is simple, to provide you the best rate possible.
RECAP - Please provide your accurate odometer readings when requested, our goal is to save you money.
“People don't care how much you know until they know how much you care”
- Theodore Roosevelt