Car insurance premiums could be cut by 6% according to Sainsbury’s Bank

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 car insurance 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 car insurance 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 – Sainsbury’s – March 200

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