A couple of car insurance companies are now asking the government to make a move with regards to motorists driving without a car insurance coverage. According to these companies, the current penalty rates of uninsured motorists are mediocre and do not enforce motorists to follow the governments guidelines in terms of insuring against road fatalities.
According to some recently gathered statistics, one out of every twenty five British motorists are driving without the security and legal requirement of the government. This means that over 2 million British motorists are disregarding the law and deliberately yielding car insurance laws. Unsurprisingly, most of these motorists are young drivers under the age of 25. Across the whole ofEurope, this is the largest estimated number of uninsured drivers. For instance,Germanyhas 1 uninsured driver out of every 500 motorists.
The Motor Insurance Bureau has estimated that the number of uninsured drivers in theUnited Kingdomaccumulates an estimate of £ 380 million worth of damages. Hence, without an insurance to cover their own costs, around £ 30 is added to the car insurance costs of insured drivers. Furthermore, motorists without insurance are the drivers which have the highest risk of being involved in a car accident – which subsequently means there is much less chance of being able to pursue an accident claim against them.
Various car insurance companies and insurance organizations have tried to find the main reason as to this ever growing problem. The most likely reason that is evident is the staggering costs of car insurance, especially insurance for young drivers.
One spokesperson mentioned that, “It is certainly unfair for the majority of insured drivers to endow to the minorities angst. This is not only wrong but it also makes our British roads a more expensive and dangerous place to drive in. What are evidently needed are sterner rules and penalties set upon these types of drivers. Currently, an average car insurance rate is set at £ 900. With penalties for uninsured driving set at around £ 200 and a 6-point driving penalty point, the numbers simply do not add up. This would seem more tempting to young drivers than to get an insurance coverage. There truly needs to be a better incentive to urge young motorists to get an insurance coverage.”
With the recent Continuous Insurance Enforcement plan in operation, what are really needed now are sterner penalties to make these uninsured drivers see the advantages of getting a car insurance coverage. One of the possible stricter penalties may be a car confiscation or even an automatic driving ban.
- Association of British Insurers’ Director Speaks Up Against Fraud and Uninsured Driving During Conference
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