Nobody wants to pay for things they don’t use. When it comes to insurance, if you drive your car less than expected, you could get some money back at the end of your policy. We call it Mileage MoneyBack.

How does it work?

If you have a Direct Line car insurance policy, you can sign up to Mileage MoneyBack by submitting your car’s current mileage. We work out your miles driven from the date you sign up to Mileage MoneyBack, so the closer to the start of your policy that you sign up, the bigger your refund could be.

At the end of your policy year – once you receive your renewal invite – you’ll need to submit a new mileage reading. We’ll then work out how many miles you’ve driven, and compare this to the estimated annual mileage on your policy (your estimate can be found on your policy documents).

For every 1,000 miles under your annual estimate, you’ll get back 2% of the cost of your insurance (excluding optional extras or interest charged on monthly payments), up to a maximum of 20%.

In following years, you’ll only need to submit a mileage reading at the time of your policy renewal.

Sign up to Mileage MoneyBack

How much will be refunded?

At the end of your policy, we’ll refund 2% of the cost of your premium (excluding optional extras or interest charged on monthly payments) for every 1,000 miles you didn’t drive.

So, if you estimated you’d drive 12,000 miles over the year, but actually drove only 10,000 miles, you’d be due a 4% refund.

The point at which you sign up to Mileage MoneyBack makes a difference to the maximum refund you could receive. Sign up right at the start of your policy and we’ll look at the entire year when working out your refund, but start later and we’ll assume you drove an equal share of your annual mileage estimate up until your sign-up date. This is because we won’t have your mileage readings for the time before you signed up.

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Example based on a mileage estimate of 12,000 a year.

If you sign up to Mileage MoneyBack three months into your policy, we’d assume you drove one quarter of your estimated annual mileage during these three months. In this case that would be 3,000 miles. This means the maximum miles you’d be able to claim as undriven would be 9,000 - an 18% refund.

To achieve this maximum 18% refund, you’d need to have driven 0 miles over this nine-month period.

Over the nine months:

0 miles driven (9,000 lower than estimated) = 18% refund

3,000 miles driven (6,000 lower than estimated) = 12% refund

6,000 miles driven (3,000 lower than estimated) = 6% refund

9,000 driven (exactly as estimated) = 0% refund

If you were to sign up to Mileage MoneyBack 10 months into your policy, we’d assume you drove 10,000 miles in the first 10 months and assess the miles not driven for the final two months. This would mean you could claim up to a maximum of 2,000 undriven miles – a 4% refund on your premium.

Over the two months:

0 miles driven (2,000 lower than estimated) = 4% refund

1,000 miles driven (1,000 lower than estimated) = 2% refund

2,000 miles driven (exactly as estimated) = 0% refund

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What about significant changes?

We understand that circumstances can change, and that can be hard to predict. That’s what Mileage MoneyBack is for, to offer a little help during those unexpected times.

However, if you know with reasonable certainty that a new situation will significantly affect the amount you drive, you must tell us. That way, we can adjust your estimated mileage so that it’s accurate in case it affects your premium in the future. As with all car insurance policies, your premium might also change depending on the circumstance.

Just give us a call on 0345 246 3761 and we’ll be happy to help you.

Amy’s drive to work usually involves a 50-mile round trip. However, her office has been closed for a while and she’s unsure when it will reopen. Because she doesn’t know when she’ll be driving to work again, it’s best for Amy to register for Mileage MoneyBack.

Meanwhile, Steve has started a new job much closer to home – cutting his daily commute by half. He knows he’ll be driving less, and is able to work out what his new annual mileage will be. It’s better for Steve to tell us about this so we can adjust his policy.

Frequently asked questions

Yes, if you want to apply to get a refund. We’ll ask you to provide an initial mileage reading when you take out your policy with us, then submit another reading at the end of your policy. If the mileage is less than you predicted, we’ll calculate your refund and credit the account you used to pay for your insurance. The sooner you give us your first mileage reading, the more money you could get back.

Your refund is calculated from either the date your policy starts or the date you submit your first mileage reading (whichever is latest), so you should submit your first mileage reading as soon as you can.

We’ll then invite you to renew your insurance with us 30 days before your policy ends. Once you receive this invite, you’ll be able to submit your final mileage reading. You’ll then have up to seven days after your policy ends to submit it.

Absolutely. If you already have car insurance with us, you can still claim money back for the miles you don’t drive. We’ll ask you to provide an initial mileage reading, then submit another reading at the end of your policy. If the mileage is less than you predicted, we’ll provide a refund for the difference from when you registered until the end of your policy. Just keep in mind that if your policy is due to end soon, it’s unlikely you’ll get a refund unless you’ve driven 1,000 miles less than expected. As always, the sooner you give us your mileage reading, the more money you could get back.

When we calculate your refund, we’ll take the mileage reading you declared into account for the entire year. For example, if you estimated you would drive 10,000 miles, but only submit your mileage reading half way through your policy, we’ll assume you would drive 5,000 miles for the rest of the year.

It depends on how many miles you’ve driven compared to the number of miles you initially declared. But for every 1,000 miles you don’t drive (compared to your estimated mileage), we’ll refund 2% of your base premium (up to 10,000 miles). This is the amount your insurance costs once you exclude any interest paid on monthly payments and extra benefits added to the policy (such as breakdown cover).
If the number of miles you’ve driven is lower than the mileage you initially predicted by more than 1,000 miles, we’ll process your refund payment within 30 days of you submitting your end of policy reading. The account you used to pay for your insurance will be credited.
Not as a direct result of this. But as with all car insurance policies, your premium might change if you tell us of any changes to your circumstances during the policy period.