News
Uninsured drivers cost £600 million a year
Car insurance premiums could be cut by up to six per cent if it was made illegal for all registered owners to go without insurance.
The new research from Sainsbury's Bank suggests that insured drivers pay almost £600 million every year in extra premiums to cover the cost of the uninsured.
The bank has welcomed recommendations from the Association of British Insurers (ABI) to make it illegal for a registered vehicle keeper to be without insurance. Current laws only make it illegal to drive a vehicle without cover.
Nick Starling, the ABI's director of general insurance, said: "Honest motorists will benefit from introducing this new offence. This is why we urge the Government to introduce the necessary legislation as soon as possible and to ensure that the DVLA have the necessary funding to enforce this new offence as soon as legislation is secured.
"Tackling the high level of uninsured driving will help keep premiums down for honest motorists, and make the roads safer.”
"We believe that the cost of car insurance may be one of the factors fuelling the problem of uninsured motorists, but this does not have to be the case. Motorists can dramatically cut the cost of their cover if they are prepared to shop around," said Joanne Mallon, car insurance manager for Sainsbury's Bank.
Source – www.prudentminds.com – March 2005
30% of young drivers uninsured
One third of young drivers have driven without insurance, and 13 per cent think that driving without insurance 'doesn't hurt anyone'.
The attitudes came to light after a survey carried out by Max Power magazine.
The Royal Automobile Club (RAC) Foundation today expressed concern over the findings.
They have called for more competition in the insurance business with more effort from some companies to attract young drivers.
A police crackdown on uninsured drivers, involving a database similar to that used for road tax has also been recommended, along with more traffic police on the roads.
Edmund King, executive director of the RAC Foundation said: “Uninsured drivers now account for five per cent of motorists. These drivers cause more accidents and are more likely to be involved in other serious crimes than insured drivers.”
"A higher profile police presence on our roads might help to deter some of the opportunist uninsured who take a calculated risk that they are unlikely to be stopped."
Police will soon be given the power to seize and, in appropriate cases, destroy vehicles that are being driven uninsured.
According to research uninsured drivers are six times more likely to drive a non road-worthy vehicle and up to nine times more likely to be involved in an accident.
Source – www.prudentminds.com – February 2005
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