Daily Insurance Industry News
 
 
Daily Insurance Industry News
Wednesday 22nd of May 2019
September 2, 2008

Clampdown on uninsured drivers hots up

by Gill Montia

Story link: Clampdown on uninsured drivers hots up

The Government is furthering its clampdown on uninsured drivers during the autumn in a move that could reduce premiums for law abiding motorists.

The initiative will mean that uninsured drivers can be prosecuted even if they are not stopped by the police when at the wheel.

A new offence of keeping a car uninsured is being introduced and if police checks reveal that a vehicle is without insurance, a warning letter will be sent to the registered owner, who faces a fine of £100 and could even have their vehicle crushed if insurance is not taken out.

Around two million cars in the UK are thought to be driven uninsured and according to a report in the Guardian, ministers believe the new measures could save insurers £764 million over five years.

Costs for legitimate motorists could also be reduced because they currently pay around £30 of their annual premiums to fund claims met by the Motor Insurers’ Bureau, which compensates the victims of uninsured motorists.

The drivers of uninsured vehicles are far more likely to commit a variety of motoring offences than insured drivers and are estimated to cause 23,000 deaths and injuries on the roads every year.

 

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