Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 16th of January 2018
July 2, 2007

Speeding to higher insurance premiums

by Brian Turner

Story link: Speeding to higher insurance premiums

Most speeders expect to pay the fine if they get caught. Some lead footed drivers have even been known to have a fund set up for just such occasions. But the real pain comes in the form of increased insurance premiums.

Every year around two million motorists are caught with the pedal to the metal, most likely by CCTV speed cameras. The one picture will continue to cost the speeder for years to come. The fine is only the beginning.

Especially for young men, who already pay high insurance premiums, points on a license will translate into increased premiums. Those drivers that are most likely to speed are more likely to have a wreck or cause one, making them a higher risk for auto insurance companies.

The cameras were originally set up at accident black spots. MPs on the House of Commons Transport Select Committee have been so impressed with the number of speeders that have been caught that they are now urging more cameras be used.

The use of cameras is a good thing for the police, which will be freed up for more important jobs. Cameras are also good for the average driver because they contribute to road safety but cutting deaths and serious injuries by around 42%. For speeders, the cameras just mean more money to the insurance company every month. It is a very high price to pay for “the need to speed.”

 

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