Yes, the car insurance company can spy on you and make sure you are only using the miles allotted to you for your plan.
Some insurance companies have a low annual mileage discount that allows you to "save" money by driving less miles (which really means less risk for the insurance companies!). Often it will be the dealership you bought your car from that will out you to the insurance company.
Also another way they spy on you is when you go to get your car serviced, for example an oil change, that information may be reported on CARFAX. CARFAX is a very easy way for insurance companies to revoke your low annual mileage discount.
So overall if you want to save as much money as possible, find a dealership that won't snitch on you and a garage that doesn't but basic services like oil changes on CARFAX, or better yet learn to change the oil yourself.
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