New Motoring Offence Could Cut The Cost Of Uninsured Driving
7 Mar 2005
NEW MOTORING OFFENCE COULD CUT THE COST OF UNINSURED DRIVING BY £100 MILLION AND IMPROVE ROAD SAFETY SAYS THE ABI.
New Motoring Offence Could Cut The Cost Of Uninsured Driving
NEW MOTORING OFFENCE COULD CUT THE COST OF UNINSURED DRIVING BY £100 MILLION AND IMPROVE ROAD SAFETY SAYS THE ABI.New detection system could track down illegal motorists when they are not using their vehicles.
The ABI (Association of British Insurers) is urging the Government to make it an offence in law to be the registered keeper of a vehicle that is not covered by insurance. Introducing this offence could reduce the cost of accidents involving uninsured drivers by an estimated £100 million and significantly improve safety on the roads according to ABI research.
This new offence would be at the heart of a new detection regime designed to make it much easier to identify motorists without insurance. At present it is only illegal to drive a vehicle without insurance, so offenders can only be identified by roadside checks.
The UK has one of the highest levels of uninsured motoring in Europe. At any one time one in 20 motorists is driving illegally – more than one million in total.
The Government is currently consulting on a proposal to introduce this new offence to complement the existing offence of using a vehicle on the road without third-party insurance.
Creating this new offence could have dramatic impact. It could:
• Reduce the cost of accidents involving uninsured drivers. The £500 million a year cost of accidents involving uninsured drivers could be reduced by around £100 million. This would benefit all honest motorists who currently have to pay up to an extra £30 a year on their motor premiums to cover the costs imposed by uninsured drivers.
• Improve road safety. ABI research shows that uninsured drivers are dangerous. They are three times more likely to have been convicted of driving without due care and attention, and ten times more likely to have been convicted for drink-driving.
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. And the Government will gain more revenue, through Insurance Premium Tax on the additional motor premiums paid”.
The ABI also confirms that insurers are now moving to abolish the “days of grace” provision. The Government’s independent review into uninsured driving recommended abolishing this because it created uncertainty among customers about whether they were appropriately insured.
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