Aggregator calls for tough action as cost of uninsured drivers revealed

UK drivers are paying, on average, £31 a year more on their car insurance in order to cover for people who are uninsured, equating to more than £500m according to the Motor Insurance Bureau figures. This figure doesn’t take into account the financial costs surrounding accidents caused by uninsured drivers.

In addition, You Gov research released today by Comparethemarket revealed 87% of motorists feel that the government doesn’t do enough to prevent people driving without insurance and are calling for tougher penalties.

At present, the lack of clear and concise penalties for drivers flouting the law serves as little deterrent to would-be illegal motorists. In fact, the average fine for getting caught driving without insurance in the UK is just £250, which 79% of respondents felt was too low.

Aside from the incremental price increases for a policy, 68% of motorists involved in an accident with an uninsured driver had to incur liability and either pay for the incident themselves (19%) or claim on their own insurance (49%), potentially jeopardising no claims bonuses that may have been accrued. From the survey sample, more than one in 10 respondents (12%) had been involved in an accident with an uninsured driver.

“Comparethemarket is keen to get consumers the best possible deal on their motor insurance. One way the government can help with this objective is to take action to reduce the number of illegal drivers on Britain’s roads and that has to be through more severe penalties. If the number of illegal drivers decreases then the industry will have more flexibility in pricing policies for law abiding motorists,” said Jeremy Moll, head of insurance at Comparethemarket.

“At present motor policies are hit by the knock on effect of uninsured drivers and the financial implications they create; so any steps to deter uninsured drivers would be a move in the right direction."

"It is high time the government took decisive action on this problem. The average penalty for an uninsured driving offence is a fraction of the cost of a year’s car insurance, incentivising law-breaking," added Theresa Villiers, Shadow Secretary of State for Transport. "That cannot be right, and I hope Ruth Kelly will pay attention to the 87% of motorists who have told this survey that she should do something about it. Motorists have had enough of footing the bill for uninsured drivers.”

Ashton West, chief executive for the Motor Insurers' Bureau, added: “It’s clear that any deterrent to the problem of uninsured drivers in the UK would be welcome. It’s a major problem in this country and it’s an unfortunate consequence that legal drivers have to bear the cost of this type of crime. Awareness of the potential penalties needs to be increased so it makes drivers think twice before taking to the roads uninsured.”

The research also identified some regional variances including: Londoners were most likely to pay for damage caused by an uninsured driver themselves, with 46% choosing to foot the bill; almost six in 10 northerners (59%) have had to pay for damages themselves when involved in an accident with an uninsured driver, while in the Midlands this falls to 46%.