When we send you a renewal price, we want to make it as simple as possible for you to budget for the year ahead. So as well as letting you know your fixed upfront cost for the year, as well as your per-mile rate, we also work out an estimated total cost for the year.

Your annual estimate is based on how many miles we’ve charged you for so far in the year. If you’ll drive the same sort of journeys and distances in your next policy year, then you should expect your total annual estimate to be pretty accurate.

It’s worth remembering that if your circumstances change, you may end up driving more, or driving less the following policy year though. If you drive more, you’ll end up paying more in total, and if you drive less, you’ll pay less.

For example, 2020’s national lockdowns in the face of Covid-19 may have meant you drove less than usual, so the year ahead may see you drive more again. Please make sure you take this into account.

Your previous year of driving may also have seen you do more longer or shorter journeys. If you ever found yourself driving over 150 miles a day then you may have benefited from capped mileage discounts.

Of course if you’ve driven over 10,000 miles in a year, this will also have been the maximum you would have paid for - and you won’t pay for more than 10,000 miles for your next year either.

As you know, your overall cost for the year is your per-mile rate multiplied by the number of miles you drive in the year, added to your fixed upfront cost.

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