Travelers: Annual Miles

What's the difference between annual miles and certified miles with Travelers?

There are two annual mileage programs offered by Travelers Insurance. The first is an Estimated Mileage Program and the second is a Certified Mileage Program. The mileage programs are offered at a policy level and the rating is applied at the vehicle level.

Estimated Mileage Program

New Business and Vehicles Added During the Term of the Policy

The Estimated Mileage figure will represent the annual mileage that the insured expects the Vehicle to be driven during the 12 month period following the inception of the policy. If sufficient information is not provided to support the Estimated Mileage or if the information provided does not support the Estimated Mileage, then Travelers may request additional information to validate the annual mileage.

Renewal Business

Travelers will request a policyholder to provide the estimated annual miles he or she expects each Vehicle insured will be driven during the 12 month period following the policy renewal period. This information will be requested at least every three years. Additionally, Travelers may use a third-party vendor to select policyholders based on standard and consistent criteria to request additional information.

Information used to determine Estimated Annual Mileage may include, but is not limited to:

1. The insured’s estimate of the annual miles that he or she expects the Vehicle to be driven in the 12 months following the inception of the policy
2. The current odometer reading of the Vehicle to be insured
3. The reason for any differences between the estimate for the upcoming 12 months and the miles driven the previous 12 months
4. An estimate of the number of miles to be driven for Pleasure or other purposes
5. If Commuting, information pertinent to the distance, time, and frequency that the Vehicle will be used
6. Odometer readings are obtained from smog check stations licensed by the California Bureau of Automotive Repair, from the California Department of Motor Vehicles, or any other governmental agency that maintains public records of vehicle odometer readings.

Note: If Travelers cannot determine an Estimated Mileage from the information provided by a policyholder, or the policyholder does not respond to a request for information, Travelers will update the policy using the greater of the insured’s estimated annual mileage or a default annual mileage figure of 12,000. The policyholder will be informed of the mileage figure used to rate the policy at least 30 days before the mileage becomes effective on the policy.

Certified Mileage Program

An insured may opt to participate in the Certified Mileage Program. Historical odometer readings will be used to determine the annual mileage used to rate the Vehicles on the policy. On a policy that has opted to participate in the Certified Mileage Program, all Vehicles will be subject to attempts to collect the necessary odometer readings to calculate a Certified Mileage. Odometer readings will be collected at New Business and at least every other annual Renewal. Verification may be required for odometer readings supplied by the insured. Acceptable verification includes, but is not limited to, service receipts, photos, smog check reports, or bill of sale.

Sources For Odometer Readings:

The following are potential sources of odometer reading(s) that Travelers may consider in the calculation of a certified annual mileage. Travelers may use one source exclusively or a combination of sources:

1. Odometer readings of the insured Vehicle or Vehicles, made by an employee of the insurer, an agent of the insurer; or a third-party vendor retained by the insurer
2. Odometer readings recorded by an automotive repair dealer, as defined by section 9880.1 of the Business and Professions Code, in the ordinary course of the business of servicing a vehicle, provided to the insurer by the policyholder or by a vendor retained by the insurer
3. Odometer readings are obtained from smog check stations licensed by the California Bureau of Automotive Repair, from the California Department of Motor Vehicles, or any other governmental agency that maintains public records of vehicle odometer readings. Any odometer readings obtained pursuant to this section shall be provided to the insurer by the policyholder, the California Bureau of Automotive Repair, the California Department of Motor Vehicles, any government agency that maintains odometer readings, or a vendor retained by the insurer
4. Odometer readings reported to the insurer by the insured or by an agent of the insured
5. A technological device

Determining Eligible Odometer Readings

To successfully calculate a Certified Mileage, odometer readings must be at least 90 days apart but no more than 1,095 days apart.

Mileage from odometer readings will be annualized over a 365 day period to calculate a certified mileage. Additionally, following our mileage calculation outlined in this rule, the derivation will choose the most recent eligible odometer reading and the eligible odometer reading closest to 365 days from that reading to calculate a certified mileage.

New Business

1. Overall Process

At New Business the following information, at minimum, will be requested for all Vehicles on policies that have opted to be part of the program. The information will be requested prior to issuance.

1. Vehicle’s Current Odometer Reading
2. Vehicle’s Current Odometer Reading Date
3. If the Vehicle was purchased in the last 90 days
4. Odometer Readings from a third-party vendor

        Travelers will attempt to calculate an annual mileage based upon the information received.

Mileage Calculation

1. If two eligible third-party data odometer readings are received, mileage will be calculated from the most recent eligible third-party data odometer reading and the eligible third-party data odometer reading that is closest to 365 days from that reading.
2. If one eligible third-party data odometer reading is received and can be supplemented by the customer-supplied current odometer reading at New Business, mileage will be calculated from the customer-supplied current odometer reading, and the eligible third party data odometer reading closest to 365 days from that odometer reading.
3. If mileage cannot be calculated due to a lack of eligible odometer readings, the Vehicle will be rated on the estimated mileage curve using the customer’s estimated mileage.

Renewal

Overall Process

1. Travelers will attempt to obtain updated odometer information from a third-party vendor every other annual Renewal when a Vehicle has a calculated mileage and every annual Renewal when a Vehicle does not have a calculated mileage or a previous report order date.
2. Travelers will notify policyholders in advance of changes to the annual mileage and Mileage Program Code.

Mileage Calculation

1. third-partyIf two eligible third-party data odometer readings are received, mileage will be calculated from the most recent eligible third-party data odometer reading and the eligible third-party data odometer reading that is closest to 365 days from that reading.
2. If Travelers is able to successfully calculate a certified annual mileage, it will be used to rate the Renewal Term. If Travelers does not receive sufficient information to calculate a certified annual mileage, the existing annual mileage will be used to rate the Renewal Term.

Vehicles Added During the Term of the Policy

1. Replacement Vehicles: If a Vehicle is replaced on the policy, the new vehicle will be rated using the Annual Mileage and Mileage Program Code of the previous vehicle.
2. Added Vehicles: If a Vehicle is added to the policy, it will follow the New Business process described in this Rule.

Mileage Disputes

An insured may dispute the Vehicle Mileage for a vehicle. The insured may provide odometer readings which will be used to determine the Vehicle Mileage.