I believe it's every year that my auto insurance company has me fill out one of these "mileage verification" letters to submit the mileage of my vehicle that they hold an insurance policy with.
- What exactly are these letters meant to achieve?
- What are the consequences if one's estimates were off for the year, by a little, by a lot?
- Does coverage stop when the estimated mileage is exceeded?
- Do all or most insurers carry out this practice?
The letter reads something like this...
Mileage Verification: Your auto insurance premium may be affected if a response is not received by
<name of insured>,
California law requires all insureres to routinely verify vehicle mileage, which is a state-mandated component of calculating insurance premiums.
Please provide us with your 12-month mileage estimates by completing and returning this survey. For your convenience, we included the mileage currently reflected on your policy and an estimated 12-month mileage calculated by
<insurance company>based on information from you and/or sources permitted by the California Department of Insurance. This includes odometer readings, commute information, and/or the California Department of Insurance permitted 12-month mileage estimate of 13,000 miles.
If we do not receive a response to this request, we will use the Estimated 12-month Miles to be Driven shown for each vehicle on the back of this page to calculate your upcoming renewal premium.
The state regulation is cited as a prime motivator for this verification, but then the mileage is explicitly said to relate to the premiums. Who's the primary driver pushing for this information? Would the insurance company get in trouble for not collecting this information? What are all the interests involved here exactly?