The UK has one of the highest levels of uninsured driving in Europe, with as many as 1.4m people in the UK or one in 20 motorists at one time driving without insurance.
The British Insurance Brokers' Association (Biba) estimate that uninsured drivers add £30 to every motor policy premium of honest motorists, they can also cost insured drivers thousands if they are involved in an accident with them. Biba believe the costs of accidents caused by uninsured drivers have soared from £180m in 1995 to £500m today.
Statistically, uninsured drivers are nine times more likely to be involved in an accident, and ten times more likely to have a drink driving conviction.
The good news is motor insurance premiums could be reduced following a new law which allows the police to confiscate uninsured vehicles. The police will now have access to the industry's Motor Insurance Database to allow them to detect uninsured drivers.
The Association of British Insurers (ABI) claims the new laws should result in a reduction in claims, leading to cheaper premiums for consumers. ABI director of general insurance Nick Starling said: 'We are pleased that the Government has seized the opportunity to act on what the industry has been calling for – better detection of and stiffer penalties for illegal and dangerous motorists who drive uninsured.'
The ABI believe that a third of motorists believe confiscation of vehicles is the strongest deterrent against not insuring a vehicle.
The ABI now wants the next Government to commit to making owning an uninsured vehicle which is kept on the road a crinimal offence, even if it is not used. Currently, it is only illegal to drive a vehicle without cover.
A report for Sainsbury's Bank suggests motor insurance premiums could be reduced by around 6% if it was made illegal for all registered owners and drivers alike to go without insurance.
|
